According to reports, the White House will issue an executive order next week instructing government agencies to examine different aspects of digital assets with the aim of creating a comprehensive regulatory framework.
Yahoo! published a Thursday report. Yahoo! Finance's Jennifer Schonberger reported that an official with knowledge of the matter in the Biden administration indicated that the executive order could be issued as soon as next week. According to reports, President Biden will direct the Office of the Attorney General and the Treasury Departments to examine the possibility of the U.S. issuing a digital currency central bank.
The newly named Alondra Nels, Director of the Office of Science and Technology Policy, will also provide an assessment of the infrastructure required for the U.S. support of a digital currency. According to reports, the agency will issue a report on distributed ledger technology to the U.S. president within 180 days. An update on its environmental impact is expected in 545 days.
The Financial Stability Oversight Council was created to study the financial stability implications of the introduction and use of cryptocurrency. The Securities and Exchange Commission and Commodity Futures Trading Commision will examine measures to protect the markets and report back to the President on ways to reduce risks related to crypto.
The impact of digital assets on market competitiveness will be studied by the Federal Trade Commission, Consumer Financial Protection Bureau, and Office of the Attorney General. Privacy concerns in this space will be reviewed by the director and chair of each of the two agencies.
The executive order, which is the 81st signed by President Biden since he took office January 2021, would be used to create a comprehensive regulatory framework in the United States for digital assets. Over four years, the previous administration had issued 220 executive orders. President Barack Obama has released 276 during his two terms.
During the United States' history, cryptocurrencies were not often mentioned in executive orders. This technology was only available to the public during the three most recent administrations.
Donald Trump issued a March 2018 order prohibiting U.S. residents to transact with "any digital currency or digital coin" issued by Venezuela's government. This refers to the Petro token. In a July 2018 order, the former president referenced "digital currencies fraud" and established a task force to combat market integrity.
In 2015 , President Obama issued another order that hinted authorities could seize digital assets linked to "significantly malicious cyber-enabled activity." The order was extended by President Biden through April 2022 in March 2021. The Justice Department and other agencies have created a task force in order to seize and track digital assets associated with illicit transactions.