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Highlights
- US President Joe Biden’s government is expected to release its executive order next week.
- It is suggested that the executive order would direct the Financial Stability Oversight Council to examine the issues related to financial stability owing to the introduction of cryptocurrencies.
- Besides, leading federal agencies such as the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), Federal Reserve, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency will look to inculcate measures which will mitigate risks when it comes to cryptos.
Ever since US President Joe Biden had announced in January that he is preparing to release an executive order, which will give federal agencies the power to study different aspects of digital assets, the crypto community has been waiting with bated breath, fearing its impact on the market.
However, it seems, after a series of discussions, the Biden government is expected to release its executive order next week. According to news reports, the new executive order is expected to hand the Office of the Attorney General, the State Department, and the Treasury Department the power to examine the effect of a potential rollout of central bank digital currency (CBDC).
What will the executive order entail?
It is suggested that the executive order would direct the Financial Stability Oversight Council to examine issues related to financial stability owing to the introduction of cryptocurrencies. Besides, leading federal agencies such as the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), Federal Reserve, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency will look to inculcate measures which will mitigate risks when it comes to cryptos.
Also read: Why is DIA (DIA) crypto rallying?
When released, this will be the first official regulatory document related to the digital assets released in the United States.
Possible impact on crypto mood
Setting aside the growing tensions between Russia and Ukraine, the suggestive news report of Biden coming out with the executive order seems to have impacted the market today. Leading cryptos such as Bitcoin, Ethereum, Cardano, Solano, etc. saw a fall.
Especially Bitcoin, which plummeted by 8 per cent in the past 24 hours, which happens to be its biggest overnight drop in four weeks. Bitcoin on 18 February was trading at US$40,750.53 with a 24-hour trading volume of US$27,079,611,117.
Ethereum too wasn’t far behind as it dropped by almost 7 per cent. At the time of drafting, it was trading at US$2,910.83 with a trading volume of US$15,560,306,760 over a day.
Also read: Binance once again under FCA scanner following Paysafe deal
The overall mood of crypto seems to have been hit by the combination of these two factors and investors may be hoping that BTC doesn’t drop below the US$40,000-mark.
Viewpoint
There are several theories that are floating around after the news came out. Few think that Biden’s executive order would perhaps give more power to regulate the cryptocurrencies which could have an impact on the market.
With growing pressure from regulators to look at cryptos more closely, the coming days seem critical for the market. Whether the executive order will turn the market bullish or bearish remains to be seen, but once it comes out, it will probably be an interesting few days for the crypto market.
