Several media outlets indicate that the US government is considering regulate cryptocurrencies like bitcoin. This week, US President Joe Biden is expected to sign an executive order outlining the federal government’s digital asset policy.
A central bank digital currency (CBDC) research and a government plan to control digital assets are expected to be directed by the presidential order issued this week by crypto regulation US, as reported by Yahoo Finance, which includes departments of Treasury, State, Justice, and Homeland Security.
White House initiatives to deal with cryptocurrencies are now at the heart of the White House’s activities. Several individuals familiar with the situation told Bloomberg last month that a new first had been established. According to the article, several talks have been conducted by top administration officials on the executive order.
Biden’s staff is under pressure to take the lead on digital assets since federal agencies have adopted a haphazard approach during the last several years. Like those in China and other countries, government-backed coins have alarmed some industry leaders, who complain about a lack of clarity under US legislation.
While Bitcoin, the world’s most popular and biggest US crypto, fell roughly 1.9 percent to $37,673, the United States has taken action. Year-to-date (YTD) in 2022, Bitcoin is down approximately 19 percent, but it is still over 46 percent away from its all-time high of over $69,000, which it reached in November 2021.
Fears of a Russian invasion of Ukraine spurred some experts to forecast that Bitcoin may fall below the critical $30,000 threshold, which sent the most significant cryptocurrency to a more than two-week low. Bitcoin’s value continued to fall as Ukraine’s crisis worsened, undercutting claims that regulate cryptocurrencies are safe havens in times of catastrophe.
In a second Bloomberg article, White House officials and Janet Yellen were at odds about the scope of an upcoming executive order that might entail the creation of a digital dollar with crypto regulation.
According to a Bloomberg story, the executive order’s late-stage draught outlines the economic, US crypto regulation, and national security difficulties presented by virtual currency. In the second half of 2022, numerous agencies will be required to submit reports.
Among the top financial watchdogs in Washington would be the Financial Stability Oversight Council, which would conduct a study on the potential systemic effects of digital assets. A separate government study is expected to examine the illegal applications of virtual currency and crypto regulation.
In the meantime, the instruction would demand participation from other departments, including the Departments of State and Commerce. Some of those duties will be assigned for the United States to stay competitive in the global digital asset market.
There’s still time for changes to be made to the administration’s strategy, as well as the orders outlined in the executive order.
Preliminary papers were issued on Thursday, and a public comment session was launched through May 20. According to persons involved with the discussions, a central bank digital currency, or CBDC, is also anticipated to be discussed by the administration. However, the Federal Reserve is still deliberating on the matter, so the administration is likely to delay making a final decision.
This might be an effective strategy to counter the rapid expansion of private US crypto and national coins from other countries, such as China. If Congress and the White House aren’t on board, the Fed says it won’t proceed.
