In the days ahead, President Joe Biden will issue an executive order. It would usher in a new age of far tighter regulation over cryptocurrencies in the United States. It potentially signals substantial implications for the dollar as well.
As per Bloomberg News initially reported that the directive was in the process. The executive order will be revealed and signed this week, citing three people involved with the White House’s discussions.
For the time being, the White House is keeping quiet about the directive and its potential ramifications for the crypto industry. However, major media outlets have uncovered various information that portrays a narrative of a government-wide reaction to the technology’s meteoric rise in popularity in the United States and around the world.
Let us examine what President Biden’s executive order will accomplish:
Government-wide Efforts to Study Crypto & Its Effects
The order’s primary objective seems to be to direct various federal departments to create answers to the cryptocurrency phenomena. This just entails supplying the White House with a report on what they are doing to oversee the usage of virtual currencies and non-fungible tokens (NFTs).
According to early accounts of Pr. Biden’s order involves something somewhat distinct for every entity. At the State Department, this will entail drafting a policy for how the US government collaborates with foreign authorities to govern cryptocurrencies and its cross-border trading and try to ensure that US policy remains consistent with its allies. Other agencies, such as the Treasury Department, will investigate cryptocurrency’s use in economic crimes and its environmental impact.
The Digital Dollar
One of the essential sections of the directive is the order to agencies to carry on the Federal Reserve’s work. This is to investigate the prospect of creating a cryptocurrency. For example, other countries investigate a type of “digital dollar.”
In January, the Federal Reserve issued a paper outlining the benefits and drawbacks of what is termed as a prospective US central bank digital currency that might offer a safe, digital payment alternative for families and companies as the payments system evolves.
It cautioned at the time the Federal Reserve’s aceepted such a digital currency. It might substantially transform the framework of the US financial system. Consequently, it affects the functions and duties of the private industry and the central bank.
The Neutrality of the Executive Order
The decree looks neutral on the subject of cryptocurrency in general. Furthermore, it indicates that the US will not follow a handful of other countries, notably China, in outlawing the technology’s use entirely.
It also does not imply any specific new rules on the use of digital currency in the United States; however, it may indicate that such restrictions are on the way.
Overall, it indicates that significant shifts are on the horizon for the US government’s management of a technology that private entrepreneurs drove up to this point.
“The views and opinions on this Crypto News Website are solely those of the authors and contributors. These views and opinions do not necessarily represent those of iBaseTrading or its partners.”
