Biden expected to issue executive order on cryptocurrencies and CBDC next week

According to reports, the White House will issue an executive order as early as next week directing government agencies to study different aspects of the digital asset space to create a comprehensive regulatory framework.

In a report from Yahoo on Thursday, Schonberger said an official within the Biden administration familiar with the matter said the executive order could come as early as next week. President Biden’s directive will reportedly ask the Attorney General’s Office, State Department and Treasury to study the potential launch of a U.S.-issued central bank digital currency.

In addition, the director of the Office of Science and Technology Policy - the newly appointed Alondra Nelson - will conduct an assessment of the infrastructure needed to support a digital dollar in the United States. It is understood that the agency plans to issue a report on distributed ledger technology to the President of the United States within 180 days and an update on its impact on the environment within 545 days.

According to the executive order, the U.S. Financial Stability Oversight Board will study financial stability issues posed by the introduction of cryptocurrencies. The U.S. Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), Federal Reserve (Fed), Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC) will consider measures to protect the market and report to the President to reduce cryptocurrency risks Methods.

The U.S. Consumer Financial Protection Bureau, the Federal Trade Commission and the Office of the Attorney General will study the impact of digital assets on market competition. The directors and chairs of the first two agencies mentioned above will each review privacy concerns in this area.

This executive order is the 81st executive order signed by US President Biden since he took office in January 2021. The executive order will reportedly be used to create a comprehensive regulatory framework for digital assets in the United States. The previous administration issued 220 executive orders over four years, and President Obama issued 276 during his two terms.

Source: Pexels

Cryptocurrencies have rarely been mentioned in executive orders in U.S. history. The technology only existed during the first three administrations.

In March 2018, Donald Trump issued an order prohibiting U.S. residents from trading in “any digital currency, digital coin, or digital token” issued by the Venezuelan government, referring to the country’s Petro token. The former president also referred to "digital currency fraud" in a July 2018 order creating a task force to deal with market integrity and consumer fraud.

Another order issued by President Obama in 2015 suggested that authorities would be able to seize digital assets associated with "significant malicious cyber activity." The executive action essentially allows officials to seize "funds or other assets" without "prior notice" under the National Emergencies Act. In March 2021, President Biden extended the order through April 2022. Since then, the Justice Department and other government agencies have created a task force to track and seize digital assets associated with illicit transactions.

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