Next week, President Biden is anticipated to release an executive order on cryptocurrency regulation. The White House is planning to begin crafting a strategy to research and regulate Cryptocurrency, as well as exploring the possibility of creating its own central bank digital currency (CBDC).
President Biden will release an executive order on cryptocurrency monitoring next week, according to a report in Yahoo Finance, following a Federal Reserve report (PDF warning) into a digital dollar.
According to reports, the executive order will commission a study into the US creating its own ‘digital dollar,’ or CBDC, as well as tasking various government agencies with developing reports on payment systems, environmental impact, financial stability issues, and other risks associated with dealing with cryptocurrency.
The White House’s full-court drive on crypto appears to entail tasked government agencies—such as the Treasury and Homeland Security departments—with addressing many of the challenges and concerns that occur when dealing with the digital currency on a long-term basis.
The FBI is even forming a specific section to investigate large-scale crypto crimes, which appear to be occurring on a weekly basis.
The SEC and the Federal Reserve, for example, will investigate market protection measures’ that come under their jurisdiction. The Financial Stability Oversight Council, which was established in the aftermath of the 2008 financial crisis, will look at the financial stability risks that arise when countries trade in cryptocurrency.
The notoriously insecure realm of cryptocurrency, to be precise. Though some see a digital dollar as a more reliable alternative to cryptocurrencies as we know them now.
Speaking of countries engaging in cryptocurrency, the presidential order is likely to indicate that the government will collaborate with other countries across the world that are considering or building their own CBDCs in order to standardize digital currency legislation. According to this Atlantic Council analysis, that figure is nearly 90.
Only a few countries (mostly in the Caribbean) have established their own digital money so far, but more than a dozen others, including China and South Korea, are apparently working on their own digital currencies.
The study’s purpose is to develop a common regulatory framework that will govern all types of digital asset transactions.
According to a source close to the Biden administration, the Treasury Department, State Department, and Attorney General’s Office would also be given instructions on the future launch of a CBDC in the country.
Alondra Nelson, the newly appointed Director of the Office of Science and Technology, will assess the facilities and infrastructure that the United States will need to sustain a CBDC. Within six months of the directive’s issuance, the agency will provide an update to the president on distributed ledger technology (DLT). All aspects of the technology, including its implementation, will be examined.
Also read: The UAE to Launch National Crypto Licensing System
