US President Joe Biden is likely to issue an executive order on crypto policy this week
United States President Joe Biden is expected to issue an executive order on cryptocurrency policy this week, according to a report from Yahoo Finance. The order would commission a study on the central bank digital currency (CBDC) or “digital dollar,” which the United States is currently working on. It will also commission several agencies to create reports on the risks associated with cryptocurrency, such as its environmental impact, financial stability issues, payment system obstacles, among others.
News of this executive order follows a Federal Reserve report that detailed the CBDC’s impact on the economy. And the next directive will ask several federal agencies to further assess the impact of crypto and the CBDC.
The Departments of Treasury, State, Justice, and Homeland Security are responsible for evaluating payment systems, environmental impact, and financial stability issues associated with cryptocurrencies.
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The Office of Science and Technology will also be responsible for developing an assessment that details the support structure required to create a CBDC. The office is also expected to submit a full report on distributed ledger technology within 180 days, with a secondary report on its environmental impact within 545 days.
In an ongoing effort to mitigate the plethora of scams associated with crypto, the Federal Bureau of Investigation (FBI) has been tasked with forming a special unit led by veteran computer crime prosecutors to crack down on criminal activity in this industry.
The Financial Stability Oversight Council (FSOC) has been tasked with investigating potential risks associated with digital assets. The FSOC has also been tasked with reviewing the systematic risks of stablecoins by the President’s Task Force on Financial Markets.
Other agencies like the FTC and the Consumer Financial Protection Bureau have been asked to work with the attorney general to assess the impact of the growing digital asset industry on market competition. The CFTC, SEC, Federal Reserve, FDOC, and OCC have also been tasked with creating market protection measures in their respective jurisdictions.
The executive order will also detail measures to protect individual investors, consumers, and businesses from cryptocurrency risks. The Treasury will work with the SEC and Commodities Futures and Trading Commission to develop a report detailing cryptocurrency risk safeguards.
The executive order is also rumored to have a plan to coordinate with countries around the world to standardize rules and regulations for the crypto industry as a whole. The Department of State, Department of Treasury and Commerce, and USAID will create an overarching framework for international and interagency engagement with countries to improve digital asset suitability.
The White House seems to be making a more concerted effort towards the CBDC, as various countries have already put their own framework in place. But the biggest competition for the United States appears to come from China, which has already taken in millions for the use of its digital yuan. This could considerably weaken the dominance of the dollar in the world.
There has been no indication of the tax rules that will be implemented in the decree as of yet.
“What the administration would do is crack down on Coinbase and others and use regulations to make it so onerous for exchanges, especially if Biden is going to call it a national security issue,” speculates Vladimir Signorelli, founder of the company. investment research firm Bretton Woods Research and a Bitcoin investor. “If they raised taxes, treated it differently, it would be unfortunate. It would be terrible,” he told Forbes.
First post: STI