The United States Biden administration is preparing to release an executive order on cryptocurrencies as soon as next month, according to a Bloomberg report on Saturday. The order is expected to bring an initial government-wide strategy, assessing the risks and opportunities of digital assets.
Though there is no official confirmation on the upcoming executive order, senior administration officials are reportedly attending multiple meetings to discuss the plan. The draft of the directive is expected to be presented to US President Joe Biden in the coming weeks.
Crypto Regulations Are Important
Regulations around cryptocurrencies are complicated in the United States without any clear framework. Bitcoin and Ethereum are seen as commodities and any investment product related to them is being overseen by the Commodity Futures Trading Commission (CFTC). However, the situation is different for other cryptocurrencies.
Additionally, the Securities and Exchange Commission (SEC ) busted several cryptocurrencies accusing them to be unregistered securities. One such case is the ongoing lawsuit against the blockchain company, Ripple that allegedly raised $1.2 billion by selling unregistered tokens.
Other US federal agencies have been studying and drafting regulations around cryptocurrency for years now. Now with the upcoming White House directive, it will put the Biden administration at the center of crypto legislation.
Moreover, the report pointed out that the administration might issue some directives on the issuing of a central bank digital currency (CBDC) as well. However, the Federal Reserve is already discussing the digital dollar, so any firm position on the matter by the White House is unlikely.
Earlier, the Federal Reserve clarified that it has no intention to proceed with the prospect of a digital dollar without the consent of the White House and Congress.
