The White House announced that the President of the United States of America (Joe Biden) will issue an executive order next week, directing government agencies to study the details of the cryptocurrency industry in the country. Taking into account that Biden has imposed many laws since the beginning of his term in office, it is therefore expected that He’s setting rules in the digital asset space as well.
Biden’s release of the cryptocurrency decision is expected sometime next week when he will also focus on central bank digital currencies.
How legitimate is this decision?
Despite the importance of the executive order that Biden will announce next week on cryptocurrency, which is a written and signed directive from the President of the United States of America, who runs the federal government. However, it is considered unofficial legislation, since Congress has the power to repeal it.
Beginning on February 15, 2022, President Biden has signed 80 such executive orders, and his next coverage is expected to be geared toward cryptocurrencies, central bank digital currencies, and ways to regulate them in the US market.
A Democrat could ask the departments of Treasury, State, Justice, and Homeland Security to design a comprehensive regulatory framework for the cryptocurrency industry, and those agencies should also prepare a report on money and payment systems.
Cryptocurrencies are an attractive option for investors
Cryptocurrency proponents argue that the world is moving into the digital age, and this is what puts Bitcoin and cryptocurrencies in the center stage, so they believe that cash in cryptocurrency is not useful, at the same time that fiat currencies are witnessing a gradual decline in their value, due to the rise in global inflation, This makes cryptocurrencies an attractive option for investors.
Biden’s executive order could look at measures to protect consumers, businesses, and investors in particular, this may require guidance on transparency and strengthening of know-your-customer (KYC) rules.
The report also indicated that the Biden administration will work to coordinate with other countries to standardize encryption rules for cryptocurrencies.
What is the position of US lawmakers on cryptocurrency?
Many are questioning whether the US Congress can legislate cryptocurrency, or whether they will treat the cryptocurrency industry as a traditional financial asset.
Biden has also preceded both Donald Trump and Barack Obama while in office, issuing executive orders on digital assets. In 2018, Trump signed an executive order banning any financial transactions in the United States that depend on Venezuela’s Petro currency. In 2015, Obama allowed authorities to seize digital assets related to “malicious Internet-enabled activities” and gave officials the power to seize these codes without prior notice.
US authorities make promises on cryptocurrency
Federal Reserve Chairman Jerome Powell asserted in October 2021 that the US government, unlike China, had no intention of banning cryptocurrency activities. He added that it was necessary to oversee this space, and warned that cryptocurrencies, in particular, were assets. Digital needs special regulatory attention.
Several days later, Gary Gensler, Chairman of the US Securities and Exchange Commission, tabulated the regulatory plans citing stable coin concerns, arguing that cryptocurrencies could cause financial stability problems for the country’s monetary network.
Earlier this year, Gensler also touched on cryptocurrency exchanges. He believed that the financial watchdogs in Washington should directly regulate these commercial places.