Biden Prepares To Release Executive Report Outlining Crypto Risks

The Biden administration is apparently all set to issue an executive order outlining government-wise cryptocurrency strategy. This shall be released early next month and will be presented by President Joe Biden. The idea behind this report is to provide a detailed, comprehensive and extensive strategy on cryptocurrency along with recognising risks and opportunities of the same. The executive order shall ask the Federal agencies to identify the risks and scope of cryptocurrency effectively and accurately. Bloomberg reported this news on Friday and hadn’t cited sources. 

White House has now put itself in the centre of the U.S crypto policy. Federal agencies for the longest time have been investigating and issuing regulatory guidance for cryptocurrency. Through this particular directive, the White House would be gaining a central role in matters of setting and regulating policies concerning digital assets. The strategy would be released in another week or so.

Lack Of Clarity On Crypto Rules And Regulations

The strategy has been drafted as an executive order and as reported by Bloomberg, several meetings had been held to deliberate and discuss the executive order. This decision to put forth an executive order comes after Joe Biden’s team faced some pressure regarding assessing the risks and scope of the digital currency. Soon after, Biden’s team decided to put an end to the haphazard approach and tasked the White House with analyzing the risks and rewards of the industry. 

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Industry experts in the past have complained regarding the unavailability of specified U.S rules. Many are also concerned regarding the involvement of China and other nations’ government-backed coins which could potentially threaten the dollar’s dominance. 

Crypto has caught the eye of the US Presidential office | Source: CRYPTOCAP-TOTAL on TradingView.com

Summing Up The Executive Order

The current or the late-stage draft of the executive order happens to encompass details regarding the economic, national and regulatory challenges that the digital asset carries. Reports from various regulatory agencies will be considered while drafting the executive order, mentioned by the people familiar with the case who have asked not to be named. This particular development is after the consumer’s interest in the volatile crypto market has piqued following Bitcoin’s massive fall in prices in the past few days. 

As mentioned above, reports from other regulatory agencies will help in bringing together an extensive report, one such report could be expected from the Financial Stability Oversight Council. FSOC includes heads of Washington’s top financial watchdogs; this report shall encircle a lot of insight regarding the systematic impact of cryptocurrencies.

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There could be another report which might speak of unlawful uses of virtual coins. This directive also requires involvement from different departments such as the State Department or even the Commerce Department. The Office of Comptroller of the Currency, SEC along with CFTC have provided guidance letters, unofficial statements and rulemaking which could help determine how various aspects of the crypto industry are expected to follow the federal law. 

The administrative plan, however, continues to be subjected to further modification before it has been concretely formulated.

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