The U.S. government is finally heeding to calls for the provision of regulations clarity for digital assets. Reports indicate that President Joe Biden is set to sign an executive order that will charge federal agencies to commence a thorough study of cryptocurrencies.
White House commissioning joint effort to regulate crypto
According to sources cited by Bloomberg, the presidential order, which has been in the works since last year, may finally arrive this week. The plan is to get all hands on deck to provide regulatory oversight for the crypto industry, the White House sources said.
The Biden administration intends to set a 180-days deadline for a series of reports on the future of money in the US. These reports would encompass the potential regulatory changes that need to be made for crypto.
Additionally, the agencies will be tasked with examining the national security and economic impact of Bitcoin and cryptocurrency to the US, as well as its allies.
The executive order, which has been in the works since last year, will require federal agencies across the government to report later this year what they’re doing regarding digital tokens, the source told Bloomberg.
The agencies being called to participate include the Treasury Department, National Economic Council, Council of Economic Advisers, and the White House National Security Council.
The latest report is coming after reports emerged in January that the order would be signed soon.
Speculation around the order heightened in February as the US began to consider imposing crypto sanctions on Russia, which is currently invading Ukraine.
What the crypto market can expect
One implication of the move from the US government is that cryptocurrencies have a role to play in the long-term plans of the country. However, concerns persist that not all the agencies involved hold crypto in a favorable light.
The Treasury Department, which is also among the agencies involved, has long been agitating for the crypto industry to be reined in. Last week, Treasury Secretary Janet Yellen disclosed that crypto was being watched closely for any indication of being used to evade sanctions by Russia.
Aside from stemming sanction evasion, the order is seeking to put an end to the endemic use of crypto in ransomware and cybercrime.
Similarly, the exact details of how the US’s CBDC will operate are also expected to take a central role in the reports. The US Federal Reserve Bank released a discussion paper on a possible CBDC back in January.
While the Fed noted that no policy outcome was being considered, the Fed chairman, Jerome Powell, has stated that a digital US dollar could be highly beneficial and had to be done right.
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