Biden to Issue an Executive Order on Crypto This Week – Bad News for the US Dollar?

United States President Joe Biden is set to issue an executive order on crypto this week, an administration official with knowledge of the matter has revealed.

The EO will require government agencies to conduct detailed reviews of various areas of the crypto asset landscape to develop an expansive regulatory framework.

According to reports, the executive order would mandate the Treasury Department, State Department, and Attorney General’s Office to investigate the possibility of launching a digital currency issued by the US Federal Reserve.

Biden’s crypto policy announcement was delayed due to a disagreement between Treasury Secretary Janet Yellen and White House officials over the scope of the planned EO, the sources said.

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Crypto Executive Order: For Financial Stability

The EO was due to be signed last month but was delayed due to a dispute between Yellen staff and National Economic Council officials, the vines said, but a treasury official refuted the claim as “incorrect “.

The Biden administration has made a concerted attempt to regulate the sector on a large scale.

A veteran computer fraud prosecutor has been hired to lead the Justice Department’s National Cryptocurrency Enforcement Team, while the Federal Bureau of Investigation has formed a special unit for blockchain analysis and discovery. confiscation of crypto-assets.

The US Financial Stability Supervisory Board, created during the 2008 financial crisis to review systemic risks, will be tasked with investigating economic stability issues related to virtual assets.

Total crypto market cap at $1.751 trillion in the daily chart | Source: TradingView.com

Biden EO to solve many problems

In addition, the EO will examine the measures to be taken to protect businesses, consumers and investors. It will also address concerns such as privacy, distributed ledger technology, and stablecoins.

Biden’s crypto executive order is the 81st he has approved since assuming the presidency in January 2021. Over a four-year span, the previous administration issued 220 executive orders, while President Barack Obama issued some. 276 during his eight-year tenure.

Federal agencies have taken a piecemeal approach to digital assets in recent years, and Biden staff are under pressure to play a leadership role on the subject.

Industry executives frequently lament what they perceive to be a lack of clarity and certainty about U.S. standards, while others worry that China and other countries’ support for the government-backed currency jeopardize the dominance of the US dollar.

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A few countries have already established their own digital currencies, but more than a dozen others, including China and South Korea, are apparently working on their own digital currencies.

Government agencies will have to deal with the challenges and anxieties that arise when dealing with digital currency on a serious long-term level under the White House press on the asset class.

Meanwhile, regulators have expressed concern over the lack of a “safety net” for investors and potential threats to financial stability as the crypto market hit over $2 trillion.

Featured image from Original News, chart from TradingView.com

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