Regulation: Biden to issue executive order on cryptocurrencies next week
According to Yahoo Finance, which investigated the case, the executive order is also expected to address central bank digital currencies, or CBDCs, as they are known.
A government official familiar with the matter told the portal that the upcoming directive will commission a study of a CBDC.
At the same time, it will ask several agencies – including the Departments of the Treasury, State, Justice and Homeland Security – to develop a report on the future of money and payment systems.
The Financial Stability Oversight Board (FSOC) will assess the effects of digital assets on financial stability.
In addition, the order intends to review measures to protect consumers, investors and companies with respect to cryptocurrencies. Additional details on this were not provided.
It will be up to the Treasury – in consultation with the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) – and federal banking agencies to develop the report on how to hedge against cryptocurrency risks.
The chairman of the Federal Trade Commission (FTC) and the director of the Consumer Financial Protection Agency will also be asked to look into privacy issues potentially created for digital assets.
The government will also look into coordinating with other countries to standardize rules for cryptocurrencies. The State Department, the Treasury and other bodies will create a framework for international engagement. Thus, the idea is to create an international forum to improve the adoption of digital assets and standardize rules.
After the directive is issued, agencies must report their findings to the White House within 90 to 180 days.
US eyeing cryptocurrencies
This likely executive order shows how committed the US government is to regulating the industry.
Recently, the FBI formed a new unit focused on cryptocurrencies. The unit is led by an experienced computer crime prosecutor.
This week, Treasury Under Secretary Nellie Liang told the Senate that the FSOC is discussing the risks of stablecoins. In addition, they are taking steps to determine the authorities of the regulators on the matter.