The Biden administration in the United States is preparing to issue executive orders regarding the cryptocurrency market as soon as next month, according to a Bloomberg report released on Saturday.
It is expected to bring in executive orders and carry an initial government-wide strategy, to assess the risks and opportunities of digital assets.
Although there was no official confirmation of the upcoming executive order, senior administration officials were reported to attend multiple meetings to discuss upcoming plans.
The draft guidance is expected to be presented to US President Joe Biden in the coming weeks.
Important upcoming regulations for the cryptocurrency sector:
Regulations regarding cryptocurrency are complicated in the US as they are without any clear framework.
Bitcoin and Ethereum are viewed as commodities and any investment product related to them is overseen by the Commodity Futures Trading Commission (CFTC).
The situation is different for other cryptocurrencies.
Recently, the Securities and Exchange Commission (SEC) seized several cryptocurrencies accusing them of being unregistered securities.
One such case is the ongoing lawsuit against Ripple, which allegedly raised $1.2 billion through the sale of unregistered tokens.
Other US federal agencies have been studying and drafting regulations about cryptocurrencies for years now.
Now, with upcoming White House directives, the Biden administration will be at the center of crypto legislation.
The report indicated that the administration may issue some directives regarding the issuance of a central bank digital currency (CBDC) as well.
The Federal Reserve is already discussing the digital dollar, so any tough stance on the crypto market by the White House is somewhat unlikely.
Learn about the reasons for the decline of the digital currency SOL in the ranking of the list of the largest currencies by market capitalization
Economist Nouriel Roubini says El Salvador’s president should be impeached over Bitcoin