Various inside sources have confirmed that the Biden administration will issue an executive order next week that will direct all government agencies to thoroughly research crypto operations to recommend the appropriate crypto regulation.
Understanding Crypto And Initiating Crypto Policies
The Joe Biden-led administration seeks to understand cryptocurrencies better to initiate the appropriate crypto regulation. Thus, it is likely that the president will issue an executive order next week to its financial watchdogs mandating them to study cryptos, including national digital currencies, as a matter of urgency.
The result from this mandate will enable the administration to create more suitable crypto policies for cryptocurrencies. Once the administration grants authorization to the agencies, the agencies are expected to give a detailed account of their research to the white house within three to six months.
Various Departments And The Responsibilities In This Mandate
The treasury, state, justice, and homeland security departments will also be granted authorization by the white house to research and report emerging and possible future payment forms. Part of the executive order will also task the financial stability oversight council to assess any possible consequences of cryptocurrencies over financial stability in the economy.
The president’s working group had previously authorized this council to perform similar research on stablecoins. The white house will approve that the consumer financial protection bureau (CFPB), the attorney general, and the Federal trade commission (FTC) determine how digital currencies affect market competition through this executive order.
In addition to the mandate above, the CFPB and the FTC are also expected to determine how these virtual currencies affect the anonymity of transactions. The CFTC, treasury, the sec, and selected banking agencies will be tasked with understanding cryptos related to investors’ and consumers’ protection. Furthermore, the president expects a report from the FDIC and the office of the currency comptroller regarding possible issues consumers might have with digital currencies.
Collaborating With International Bodies
Part of the executive order will also authorize several agencies to collaborate with international bodies over standard operating policies for cryptos. It will also grant several government agencies access to resources to help them understand the technical aspects of establishing a national digital currency for America.
However, the Massachusetts Institute of technology and the Boston Fed are already evaluating CBDCs, and two weeks ago, they published the first phase of their evaluation. The Fed Reserve is also studying national digital currencies and posted an update on their federal digital currency investigation last month.
Strangely, some agencies have already started their investigation without receiving authorization from the white house. On Thursday, the DoJ announced the creation of a virtual asset exploitation unit that will work alongside the FBI.
Regulating the crypto space has been an issue with several regulatory bodies as the crypto space continues to grow at an alarming rate. On February 17, a Bloomberg report stated that the UAE plans to release a crypto regulation to entice top crypto players globally, especially those in the USA.