US to chart out crypto strategy; Biden to issue exec order this week

Highlights

• US President Joe Biden plans to sign an executive order this week in an effort to strengthen the US government's approach to cryptocurrencies.
• The White House has reportedly been seeking to establish a central policy regarding cryptocurrencies since January.
• While the White House has refused to go into the specifics of the executive order, mounting external pressures suggest that the order will focus on certain aspects.

US President Joe Biden plans to sign an executive order this week in an effort to strengthen the US government's approach to cryptocurrencies.

The order is expected to provide guidance to several federal agencies in investigating potential regulatory changes for cryptocurrencies.

The order will likely also touch on US national security and the broader economic impacts of digital currencies.

Federal Government’s History With Crypto

The White House has reportedly been seeking to establish a central policy regarding cryptocurrencies since January when reports suggested that certain governmental agencies were assessing the pros and cons of developing a central bank digital currency (CBDC).

Governmental agencies in the US have been examining potential policy and regulations regarding cryptocurrency for several years. However, their efforts have been largely fragmented and disorganised.

Meanwhile, this fragmented effort and the lack of clarity about the overall direction of US policy has been a source of frustration to participants in the growing cryptocurrency market.

Additionally, some participants are concerned that decisions by other major nations to issue CBDCs might threaten the strength of the US dollar in the global economy.

What will be the executive order entail?

While the White House has refused to go into the specifics of the executive order, mounting external pressures suggest that the order will focus on certain aspects. For example,  concerns surrounding using cryptocurrencies as a way of circumventing financial sanctions are one aspect that the executive order is expected to address.

In response to Russia’s invasion of Ukraine last week, the US and its allies have imposed heavy financing sanctions on Russia’s ruling class.

Putin Continues His Invasion || What's happening in Russia-Ukraine War? #RussiaUkraineConflict

The order is also expected to address cryptocurrency regulations, which many industry leaders have criticised for their lack of clarity. As such, the executive order is expected to assign roles for government agencies relating to the regulation of digital tokens.

The agencies that are assigned those roles are also expected to have to submit updated reports about their plans later this year.

Bottom Line

While waiting for the executive order to become public is a tense time for those with interests in the crypto space, it also represents a much-needed change to a largely disorganised and fragmented sector. Time will tell exactly how the forthcoming reforms will impact the crypto space overall.

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