- The White House is getting ready for an executive order for release next month that will include a broad, comprehensive government strategy on cryptocurrencies and inquire Federal agencies to find out their opportunities and risks.
- For years now, the Federal agencies have been providing regulatory guidance around the digital asset sector. However, the Fed is unsuccessful in deriving a straightforward approach, and now the pressure of leading the matter is on Biden’s government.
- Guidance letters, informal statements, and public rulemaking efforts are issued by the Office of the Comptroller of the Currency (OCC), SEC and CFTC to point out how various aspects for the crypto industry should conform to federal laws. However, these efforts are documented by any agency.
Biden Administration To Release Executive Order On Crypto In February
The Biden administration is doing the groundwork to roll out an initial government-wide strategy for crypto assets as early as next month and task federal agencies with evaluating the opportunities and risks they impose, according to the individuals accustomed to the matter.
The unnamed sources said that the Senior administration held several meetings on the plan, which is being drafted as an executive order. In the coming weeks, the directive will be Presented to President Joe.
Over the several years, Federal agencies have failed to derive a straightforward approach regarding the digital assets, and Biden’s government is under pressure to lead the matter.
Often the industry experts complain about the obscurity of U.S. rules. There is also the anxiety that the dollar’s dominance might be threatened by China and other nations of government-backed coins.
The directive will put the White House in the central role of supervising the efforts to regulate digital assets and set policies.
Biden’s administration has prioritized the matter in the atmosphere of the volatile crypto market. Bitcoin, the top and most liquid digital asset, the price currently stands at $35,078.86, in comparison to its ATH of around $69,000 in November.
According to the unnamed sources, the executive’s order last stage draft addresses the cryptocurrencies’ regulatory and national security challenges.
Among several agencies’ reports, it will call and are due in 2022’s second half; one will come from the Financial Stability Oversight Council, which includes the top financial watchdogs from Washington and examines the likely impacts of digital assets. Another government report will be looking at illegal use-cases of virtual coins.
The directive would also need other agencies to punch in for, as it will have roles for everyone from the State Department to the Commerce Department. Among these tasks are some that aim to make sure the U.S. stays ahead of the game as digital assets are being rapidly adopted.
There is also the possibility that the administration plans, including the directives in the order, can be further changed before its completion.
The U.S. Can Also Issue CDBC
The U.S. can also issue a government-backed CDBC or Central Bank Digital Currency coin. Since the Federal reserve is still considering the issue, the administration will probably resist taking a solid stand.
The Fed released a preliminary paper on the matter and, through May 20, opened a public comment period.
With the booming growth of private cryptocurrencies and coins created by other nations like China, a CBDC could be a way through which the U.S. can stay competitive. The Fed revealed that it has no intentions to move ahead without the White House and Congress backing it.