October 5, 2022

President Biden to Issue an Executive Order on Crypto Next Week (Report)

3 min read

The President of the USA– Joe Biden– will reportedly present an executive order directing federal government firms to study the specifics of the cryptocurrency market. Bearing in mind that the leader has actually imposed various policies considering that the start of his presidency reign, he is anticipated to advise for developing rules in the digital property space, too.

The upcoming directive must come sometime next week as it will likewise concentrate on reserve bank digital currencies.

What to Anticipate?

An executive order is a signed, composed, and released regulation from the President of the United States that handles operations of the federal government. Regardless of being extremely essential, it is not main legislation as Congress has the authority to reverse it.

Since February 15, 2022, President Joe Biden had signed 80 such orders. According to a current protection, his next one will be oriented towards cryptocurrencies, CBDCs, and their particular regulation in the United States market.

The Democrat might request from Departments of Treasury, State, Justice, and Homeland Security to create a comprehensive regulative framework for the market. Those firms should likewise establish a report on the future of cash and payment systems.

Hair crypto supporters argue that the world is going digital, putting bitcoin and the altcoins as the center stage. And as such, they believe money is not so favored any longer. At the exact same time, fiat currencies are slowly losing their value due to the increasing worldwide inflation, which could make cryptocurrencies a more attractive alternative for investors.

Biden’s executive order could take a look at steps to safeguard customers, companies, and financiers. Specifically, the directive might call upon openness and enhanced Know Your Customer (KYC) rules.

The report further showed that Biden’s administration would coordinate with other nations to standardize the crypto guidelines.

Numerous marvel if the US lawmakers will present a specifically created cryptocurrency legislation, or they will treat the market as conventional financial assets such as stocks or bonds.

Joe Biden
Joe Biden, Source: The White House Biden’s predecessors, Donald Trump and Barack Obama, likewise issued executive orders on digital properties while being in power. In 2018, Trump signed a regulation disallowing any US-based financial transactions including Venezuela’s Petro cryptocurrency.

In 2015, Obama enabled authorities to seize digital properties linked to “substantial harmful cyber-enabled activities.” He also made it possible for officials to take such tokens without previous notification.

What Did The US Authorities Promise so Far?

Unlike China, the American government has no intent to prohibit all cryptocurrency activities. Fed Chair Jerome Powell asserted that in October 2021, including that guidance in the area is essential. Stablecoins, in particular, are assets that need unique regulatory attention, he cautioned.

A few days later on, the head of the United States Securities and Exchange Commission– Gary Gensler– reiterated such plans. He also raised concerns over stablecoins, arguing they might trigger financial stability concerns to the nation’s financial network.

Previously this year, Gensler likewise discussed cryptocurrency exchanges. He believed that Washington’s financial guard dogs should straight control such trading venues.

Included Image Courtesy of WhiteHouseGov