The U.S. President Joe Biden is expected to sign an executive order this week on crypto. The executive order will be directed to a variety of government agencies in order to develop a comprehensive government strategy for regulating crypto assets.
Crypto Week: Executive Order
According to Yahoo Finance, a source familiar with the situation said that Joe Biden, U.S. president is likely to issue an executive directive on crypto this week. First reported by Yahoo Finance in January was the news that Biden’s administration had prepared an executive order regarding crypto.
According to the publication, this executive order will be directed to a variety of government agencies in order to examine cryptocurrency (CBDC) and to develop a strategy for regulating crypto assets.
Different government agencies will have to submit reports on the future of money and the payment system, including the Departments of the Treasury, State, Justice, and Homeland Security.
Financial Stability Oversight Council will investigate financial stability problems arising from digital assets. According to the International Monetary Fund (IMF), crypto could soon pose risks to countries’ financial stability.
The Federal Trade Commission (FTC), the Attorney General and the Consumer Financial Protection Bureau are going to study the impact of crypto growth on market competition. Recently, the FTC issued several warnings regarding cryptocurrency investment schemes.
Market protection will be considered by the Securities and Exchange Commission, the Commodity Futures Trading Commission and the Federal Reserve as well as the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency. Gary Gensler, Chairman of the SEC, stated last week that they will collaborate with the CFTC to regulate the crypto industry.
After consultations with federal banks agencies, the SEC and CFTC, the Treasury Department will prepare a report for the President on ways to mitigate risks from cryptocurrencies.
It will examine investor, customer, and business protection measures. The executive order will also deal with privacy and stablecoins.
Last week the Federal Bureau of Investigation launched a new unit for crypto exploitation. The Department of Justice appointed its first director of its National Cryptocurrency Enforcement Team.
In order to normalize crypto regulations, the U.S. government is also looking at ways of collaborating with other countries. Robert Ophèle, a member of the Financial Stability Board (FSB), recently said global regulators are “going full steam” on crypto regulation. “The current structure is no longer fit for the purpose with the development of cross-border digital market activities,” he stressed.
Do you agree with President Biden’s executive order regarding crypto? Comment below.
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