It is reported that US President Biden will make an important decision about cryptocurrencies next week. The Biden administration will reportedly issue an executive order urging relevant agencies to coordinate cryptocurrency rules in the country. Details are on Kriptokoin.com.
Biden’s order for cryptocurrencies
Joe Biden is reportedly going to issue an executive order directing government agencies to study the features of the cryptocurrency industry. The president was already expected to encourage the creation of rules in the cryptocurrency space, as in many other areas. The upcoming directive is due next week as it will also focus on central bank digital currencies. An executive order is a written and published directive signed by the President of the United States that directs the operations of the federal government. According to a recent coverage, the next will be towards cryptocurrencies, CBDCs and their respective regulations in the US market. The President can request the Treasury, Justice and National Security Departments to design a comprehensive regulatory framework for the crypto industry.
Crypto advocates argue that the world has gone digital, putting Bitcoin and altcoins center stage. And because of this, they believe that cash is no longer preferred. At the same time, fiat currencies are slowly losing their value due to increasing global inflation, which may make cryptocurrencies a more attractive option for investors. Biden’s executive order could focus on measures to protect consumers, businesses and investors. In particular, the directive may require transparency and enhanced Know Your Customer (KYC) rules. It is also among the news that the Biden administration will coordinate with other countries to standardize crypto rules. Many wonder if US lawmakers will introduce a specially designed cryptocurrency legislation or treat the industry as traditional financial assets like stocks or bonds.
Unlike China, the American government has no intention of banning all cryptocurrency activities. Fed Chairman Jerome Powell claimed in October 2021 that market surveillance was necessary. He specifically warned that stablecoins are assets that require special regulatory attention. A few days later, Gary Gensler, chairman of the U.S. Securities and Exchange Commission, reiterated such plans. He also expressed his concerns about stablecoins, arguing that they could cause financial stability problems in the country’s monetary network.
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