U.S. President Joe Biden is expected to issue a long-awaited executive order today directing the Department of Justice, the Treasury and other agencies to examine the legal and economic implications of creating a U.S. central bank digital currency.
The White House said last year that it is considering a wide-ranging oversight of the cryptocurrency market – including an executive order – to deal with the growing threat of ransomware and other cybercrime.
Biden’s order sets a 180-day deadline for a series of reports on the “future of money” and the role cryptocurrencies will play in the evolving environment.
Referring to the significant momentum behind such a move within the Biden administration, the source said, “We may see a significant change in policy within 180 days. “This is a possible step towards the creation of a central bank digital currency,” he said.
However, the source cautioned that reports could still raise concerns about such a move or conclude that it would require congressional approval.
The probable Biden order coming today comes amid growing concerns over Russian elites’ use of cryptocurrencies to circumvent Western sanctions that is separating Russia from large parts of the global economy, seeking to create their own world by China and other economies.
The timing of the decree was first reported by Bloomberg.
Financial Crimes Enforcement Network (FinCEN) warned financial institutions on Monday to watch out for potential attempts by Russian entities to evade sanctions imposed by Washington over Moscow’s invasion of Ukraine.
Biden’s order requires new legislation from the Department of Justice to create a new currency, along with the Treasury, the Securities and Exchange Commission, the Federal Trade Commission, the Consumer Financial Protection Commission, and other agencies to study the impact on consumers. He’ll ask her to see if it’s available.
Analysts say the upcoming executive order could provide market regulators with more ammunition to bring cryptocurrencies into their space.
According to University of Chicago research, the value of cryptocurrencies exceeded $3 trillion last year, and nearly 14% of Americans have invested in digital assets by 2021. This has caught the attention of financial regulators, especially SEC Chairman Gary Gensler, who last year called the crypto industry the “wild west” of finance. Gensler told lawmakers that he wants crypto exchanges to register with the SEC, similar to traditional stock exchanges.
Rostin Behnam, Chairman of the Commodity Futures Trading Commission, also urged Congress to give his agency a leading role in regulating digital assets.
Other studies will be ordered on a cryptocurrency’s impact on competitiveness, the market and technical infrastructure needed, and the environmental impact of bitcoin mining.
US Treasury Secretary Janet Yellen last year warned of an “explosion of risk” from digital markets, including the abuse of cryptocurrencies, but said new financial technologies could help fight crime and reduce inequality.
The situation has brought even more volatility to the cryptocurrency market and experts predict that the ups and downs will continue. The wider adoption of cryptocurrencies and its recent alignment with the stock market make it even more linked to international conflict. Bitcoin is hovering around $40,000 after dropping below $35,000 just before the blackout and Ethereum is back below $3,000. In either case, experts advise against making financial decisions based on news panic.
Decree Leaked
As we share with you today, The Block has published some key points of the decree. These points are:
- Protect US consumers, investors and businesses
- Maintain US and global financial stability and reduce risk
- Illegal financing from illegal use of digital assets and reduce national security risks
- Promote US leadership in technology and economic competitiveness to strengthen US leadership in the global financial system
- Promote safe and equitable access and ensure the responsible development and use of digital assets
- Working on a US Federal Reserve Digital Currency (CBDC)
The fact that the decree was not as negative as expected, created relief in the cryptocurrency market. The decree is expected to be announced at 14:00.
After the news, there was a rise in the entire crypto money market with Bitcoin.
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