Biden To Sign Executive Order On Crypto Industry This Week

March 8, 2022 1:46 pm

President Joe Biden is scheduled to sign an executive order this week that would instruct various federal agencies to research the crypto industry and to outline possible regulatory approaches on how to deal with the growing industry.

A high-level roadmap being created is the goal of this order and would most likely dictate what the government’s approach would be for the next few years.

In addition to regulatory changes, the order will also consider security implications of using decentralized networks and understanding what the economic impact would be for the country and the USD.

Due to recent events in the international community, the government has continually gotten more pressure to start looking into crypto as decentralized financial networks start to play their role as a viable alternative to existing financial systems.

CoinDesk reports:

The order would direct federal agencies to consider potential regulatory changes, in addition to the national security and economic implications of cryptocurrencies, according to Bloomberg.

The White House has been under pressure to play a more central role in setting policies for and regulating digital assets.

That pressure has only increased with the sanctions imposed against Russia for its invasion of Ukraine, and concerns that companies and individuals could use cryptocurrencies to circumvent them.

The White House has been working on the order since last year, and in January reports surfaced that the order was coming soon.

The order will require federal agencies to report later this year on their progress with respect to dealing with digital tokens, according to Bloomberg.

Sources indicate that the findings from this executive order will likely cause a major shift in policy in 180 days with many entertaining the idea of a central bank digital currency.

With that being said, much of the information from inside sources are not completely confirmed yet as many would likely need the approval of Congress in order to be enforced.

The recent order comes after the explosive growth of crypto which include popular coins such as Bitcoin, XRP, and Ethereum.

The value of the total market grown beyond $3 trillion which marks a significant milestone for the industry, but also unfortunately caught the attention of agencies like the SEC.

Reuters.com reports:

Commodity Futures Trading Commission Chairman Rostin Behnam has also urged Congress to give his agency a leading role in regulating digital assets.

Other studies will be ordered on the impact of a cryptocurrency on competitiveness, the market and technical infrastructure needed, and the environmental impact of bitcoin mining, the source said.

U.S. Treasury Secretary Janet Yellen last year warned about an “explosion of risk” from digital markets, including the misuse of cryptocurrencies, but said new financial technologies could also help fight crime and reduce inequality.

Many are anticipating what the government agenda will be in the coming months for crypto with many expecting tighter regulations on the industry.

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