Biden gearing up to issue executive order on crypto regulation
The executive order is reportedly aimed at directing state agencies to formulate a government-wide strategy to regulate crypto assets and examine financial stability issues that may arise from digital assets.
US President Joe Biden will reportedly issue an executive order in the week of February 21st, which will direct state agencies to begin formulating a government-wide plan to regulate crypto assets.
The order will task various agencies to study CBDCs, or central bank digital currencies, as well as develop a report on the future of money and payment systems, an administration official familiar with the matter told Yahoo Finance.
It will also look at how to protect consumers, investors and businesses. Additionally, the US government is looking to coordinate with other countries to standardize crypto regulation across the globe.
The Departments of Treasury, State, Justice, along with Homeland Security, will focus on CBDCs and developing the report on the future of money and payment systems.
The Director of the Office of Science and Tech policy will conduct a technical evaluation to determine how a CBDC system can be supported. Meanwhile, the Financial Stability and Oversight Council is already studying how digital assets could affect financial stability and the systemic risks stablecoins pose.
Additionally, the Attorney General, the FTC, and the Consumer Financial Protection Bureau will be tasked with determining the impact on market competition from growth in digital assets.
Other agencies, like the SEC, CFTC, Federal Reserve, FDIC, and OCC will work on market protection measures within their specific jurisdictions.
Separately, the US Justice Department announced last week that it has appointed seasoned computer crimes prosecutor Eun Young Choi to head its new national crypto enforcement team.
Meanwhile, the FBI has launched a new unit that will specialize in blockchain analysis and virtual asset seizure.
US regulators are starting to ramp up their scrutiny of the crypto sector amid a rise in crypto-related crime. In 2021, there was a high-profile cyberattack on the country’s largest fuel pipeline. Ransomware attacks are on the rise and countries are starting to look at ways to combat these attacks.
In some cases, the FBI has managed to recover the ransom paid but due to the involvement of emerging technology like blockchain, it needs further understanding and expertise to handle these cases more efficiently.