U.S. President Joe Biden is expected to issue an executive order on cryptocurrency this week, an administration official familiar with the matter reportedly told Yahoo Finance. The news of the Biden administration preparing an executive order on crypto was first reported in January.
The executive order will direct a wide range of government agencies to study cryptocurrency and central bank digital currency (CBDC), and come up with a government-wide strategy to regulate crypto assets, the publication conveyed.
Various government agencies will be asked to produce a report on the future of money and payment systems, including the Departments of the Treasury, State, Justice, and Homeland Security.
The Financial Stability Oversight Council (FSOC) will examine financial stability issues stemming from digital assets. According to the International Monetary Fund (IMF), crypto could soon pose risks to countries’ financial stability.
The Attorney General, the Federal Trade Commission (FTC), and Consumer Financial Protection Bureau will study how the growth of the crypto sector could impact market competition. The FTC recently issued several warnings about crypto investment schemes.
The Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) will consider market protection measures within their jurisdictions. SEC Chairman Gary Gensler said last week that the SEC will work with the CFTC on regulating the crypto sector.
The Treasury Department will be in charge of compiling a report to the president on how to protect against risks from cryptocurrencies after consultation with the SEC, CFTC, and federal banking agencies.
The executive order will also examine consumer, business, and investor protection measures. Other issues it will address include stablecoins, privacy, and distributed ledger technology (DLT).
Last week, the Federal Bureau of Investigation (FBI) launched a new unit to tackle crypto exploitation and the Department of Justice (DOJ) appointed the first director for its National Cryptocurrency Enforcement Team.
The U.S. government will also look at coordinating with other countries to standardize crypto rules. 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.