It will reportedly be this week that the US president will sign a long-awaited executive order aimed at furthering the regulation of cryptocurrencies in the country.
For a long time now, there has been talk of a regulation of cryptocurrencies in the United States. Already in February it was announced that President Joe Biden was going to sign an executive order that would address the issue of crypto in the North American nation.
Now it seems that this firm is very close. According to news published in Bloomberg and spread by other outlets in English, Biden is about to sign a crypto-related order this week. The agency says the government’s plan will be announced in full this week.
According to information from Bloomberg and Reutersbased on revelations from people familiar with the Biden administration, this president would sign an order outlining the US government’s strategy for cryptocurrencies. Such a document would direct federal agencies to examine possible regulatory changes, as well as the national security and economic impact of digital assets, said the people, who asked not to be named.
It is not yet clear what this executive order would mean in itself, but it is believed that it could centralize all powers of regulatory supervision in a single entity.
It is worth noting that the White House’s focus on cryptocurrencies has drawn new attention in recent weeks after the US and its allies imposed sanctions on Russia over the invasion of Ukraine, raising concerns that organizations and people from that country could use cryptocurrencies to get around the restrictions.
The Biden administration is under pressure to play a more coordinating role on the asset class as industry executives complain about what they say is a lack of clarity in the rules. The executive order, which has been in the works since last year, will require federal agencies across the government to report later this year on what they are doing regarding digital tokens, reported BloombergNews. The plan is expected to begin creating roles for agencies across the government, from the State Department to the Commerce Department.
Likewise, the White House is also expected to address the possibility of a central bank digital currency (CBDC) issued by the US, although it is likely to refrain from taking a strong position now because the Fed is still studying the issue, it says Bloomberg. The central bank, in a document published in January, said a US CBDC could help preserve dollar dominance as other countries, such as China, adopt the technology.
The White House declined to comment to the agency on these issues.
Meanwhile, the crypto industry is facing intense scrutiny from lawmakers, including Sen. Elizabeth Warren and Senate Banking Committee Chairman Sherrod Brown, over concerns that digital assets could be used to circumvent sanctions.
However, some analysts have questioned how effective a crypto could be for this circumvention, given the still limited size of the market.
Him Das, acting director of the Treasury Financial Crimes Enforcement Network, said this week: “Although we have not seen widespread evasion of our sanctions using methods such as cryptocurrencies, prompt reporting of suspicious activity contributes to our national security and our efforts to support Ukraine and its people.”
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