According to reports, Joe Biden, the President of the USA, will issue an executive order that directs government agencies to examine the details of the cryptocurrency industry. Keep in mind that the leader has already imposed many regulations since his presidency began, so he will likely push for rules to be established in the space of digital assets.
It is expected that the directive will be issued next week. It will also include digital currencies from central banks.
What should you expect?
An executive order, which is a directive signed by the President of the United States, that directs the operations of the federal government, is published and published. It is important but not official legislation. Congress can overturn it.
On February 15, 2022, 80 of these orders had been signed by President Joe Biden. A recent report claims that his next order will be focused on cryptocurrencies and CBDCs as well as their regulation in the US.
The Democrat could ask the Departments of Treasury, State, Justice, Homeland Security and Justice to create a comprehensive regulatory framework. These agencies should also prepare a report about the future of money, payment systems.
Many crypto advocates argue that the world is moving digitally, with bitcoin and other altcoins at the center. As such, they feel cash is no longer preferred. Investors may find cryptocurrencies attractive because fiat currencies are losing value as a result of rising global inflation.
Biden’s executive orders could focus on measures to protect investors, consumers, and businesses. The directive could call for transparency and improved Know Your Customer (KYC), rules.
Further, the report indicated that Biden’s government would coordinate with other countries to standardize crypto rules.
Many are unsure if the US legislators will create a cryptocurrency legislation or treat the industry the same as traditional financial assets like stocks and bonds.
Joe Biden Source: The White House
While in power, Biden’s predecessors, Donald Trump, and Barack Obama issued executive orders regarding digital assets. Trump issued a directive in 2018 prohibiting any US-based financial transactions that involve Venezuela’s Petro cryptocurrency.
Obama granted authorities the authority to seize digital assets linked to “significantly malicious cyber-enabled activity” in 2015.
What Promises Did the US Authorities Make So Far?
The US government does not intend to ban cryptocurrency activities, unlike China. Jerome Powell, Fed Chair, stated that this would happen in October 2021 and that it is important to ensure that the space remains safe. He warned that stablecoins are assets that require special regulatory attention.
These plans were reaffirmed by Gary Gensler, head of the US Securities and Exchange Commission. He also expressed concern about stablecoins, saying they could pose a financial stability problem for the country’s monetary system.
Gensler spoke earlier this year about cryptocurrency exchanges. Gensler suggested that Washington’s financial watchdogs should direct regulate these trading venues.
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