It is reported that US President Joe Biden will introduce an executive order directing government agencies to study the details of the cryptocurrency industry.
Bearing in mind that the US President has already imposed many regulations since the beginning of his presidency, it is expected that he will push for the creation of rules in the field of cryptocurrencies as well.
The next guidance should come out sometime next week and will also focus on central bank digital currencies.
What can be expected?
An Executive Order is a signed, written, and published directive from the President of the United States who directs the operations of the federal government.
Despite its great importance, it is not a formal legislation as Congress has the power to repeal it.
As of February 15, 2022, President Joe Biden has signed 80 such orders.
According to recent coverage, his next message will be directed towards cryptocurrencies, central bank digital currencies, and their own regulations in the US market.
A Democrat could ask the departments of Treasury, State, Justice, and Homeland Security to design a comprehensive regulatory framework for the industry.
These agencies must also prepare a report on the future of funds and payment systems.
Cryptocurrency proponents argue that the world is going digital, and are putting Bitcoin and altcoins at center stage.
As such, they believe that criticism is not preferred anymore.
At the same time, fiat currencies are gradually losing value due to increasing global inflation, which may make cryptocurrencies a more attractive option for investors.
Biden’s executive order could consider measures to protect consumers, businesses and investors.
Specifically, the directive may call for transparency and the strengthening of know-your-customer (KYC) rules.
The report also indicated that the Biden administration would coordinate with other countries to standardize crypto rules.
Many are wondering whether US lawmakers will introduce legislation tailored to cryptocurrencies, or whether they will treat the industry as a traditional financial asset like stocks or bonds.
Biden’s predecessors, including Donald Trump and Barack Obama, also issued executive orders on cryptocurrencies while in office.
In 2018, Trump signed a directive banning any US-based financial transactions involving the Venezuelan cryptocurrency Petro.
In 2015, Obama allowed authorities to seize digital assets linked to malicious online-enabled activities.
It also enabled officials to confiscate these cryptocurrencies without prior notice.
US authorities and the crypto market:
Unlike China, the US government has no intention of banning all cryptocurrency activities.
Federal Reserve Chairman Jerome Powell confirmed that in October 2021, he added that oversight in space is essential.
He cautioned that stablecoins, in particular, are assets that need special regulatory attention.
A few days later, US Securities and Exchange Commission Chairman Gary Gensler reiterated these plans.
It also raised concerns about stablecoins, arguing that they could cause financial stability problems for the country’s monetary network.
Earlier this year, Gensler also touched on cryptocurrency exchanges, arguing that Washington financial regulators should directly regulate such trading venues.
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