United States President, Joe Biden, will sign an executive crypto order, according to close sources. Those in the administration who know about the alleged plan said Biden would sign the executive order within the week.
The executive order will demystify the government’s plan for the nascent digital asset class and talk about the broader impact of cryptocurrency on national security and the economy. Sources say the executive order is part of the government’s plan to gain more insight into the crypto industry and formulate regulations that guide the sector.
More on the Crypto Executive Order
Although the White House has not commented on the executive order yet, sources disclose that the U.S. has been working on enacting some policies to address the various challenges and risks of virtual currencies. The White House may be mum about it because the order is still in the works.
Last January, reports about a possible enactment of order about digital currencies surfaced. During that period, several regulators, such as the SEC, OCC, and CFTC, examined the danger and benefits of cryptos.
The aforementioned regulators then published informal statements and advice letters, indicating how the diverse components of the sector should abide by the law. Interestingly, none of these documents or statements came from a single entity, suggesting that each agency investigated on its own. Therefore, they came up with a separate report based on their findings.
Rumors about the executive order come in the wake of U.S sanctions on cryptocurrencies. U.S. approach to digital currencies in recent times has raised eyebrows, with many realizing that individuals and entities could evade sanctions through crypto. The U.S was making sure Russia was stripped of its financial powers and had no alternative route.
Industry experts have raised concerns over the lack of transparency in the country’s approach to regulating the nascent sector, citing the SEC as the culprit. The SEC has resolved to use force in the name of regulating the sector, targeting crypto firms.
The executive order will put to bed some of these erratic approaches by assigning duties to government bodies tasked with regulations. The agencies may be required to submit reports on the proposition later in the year.
Scrutinizing Virtual Currencies
Cryptocurrencies have become widely adopted. The emergence of web3 and the metaverse will further drive adoption. However, more money flowing in and out of the space will increase the scrutiny level.
Last month, the DOJ established a task force team to monitor blockchains. It partnered with the FBI and several security agencies to fastrack implementation.
Legislators like Senator Elizabeth Warren and Sherrod Brown are more than concerned about cryptocurrency, adding that lawbreakers could use the asset class to evade sanctions. Everyone is anticipating what the executive order will bring to the table if signed.