Movers and SHAKERS
Cryptocurrency Executive Order from White House Could Come Before President’s Day
The White House, according to Bloomberg, is said to be drafting an executive order for cryptocurrencies. It is more focused on being restrictive than creating a level playing field for all currencies. The expectation is the chief executive could execute the order during the month of February.
President Biden is looking to get ahead of crypto issues and give regulation a priority. The plan tasks multiple federal agencies to evaluate risks and opportunities within the digital currency environment. Bloomberg cited unnamed sources when they suggested that the reports were expected to be presented to the White House quickly.
Senior Biden administration officials have already had several talks related to the plan. Their recommendations are due to be submitted to the chief executive in the coming weeks, according to the report.
As technology rapidly changes, under current statutes and regs, there is no definitive legal framework for cryptocurrency or the regulation of crypto exchanges. The Securities and Exchange Commission (SEC), for its part, has been calling for a greater level of oversight over the crypto market.
Blockchain and digital assets are a challenge for most to understand, this is why so many outright dismiss the asset. Other skeptics point to the lack of clarity in crypto-related policy as a reason not to get involved. Executives within the industry like Sam Bankman-Fried the CEO at FTX have called for more regulation, saying it would remove barriers to entry for many retail and institutional investors.
The push by the Biden White House puts the executive branch at the center of efforts to set policies and regulate the new market. The related potential oversight agencies have been waiting for legislative guidance. This development follows a sell-off in crypto markets which follows other asset weaknesses in the face of higher costs to participate in the economy. Bitcoin which traded above $68,000 in November broke below $36,000 and ether fell below $2,500, wiping out $350 billion in value from the total crypto market over the weekend.
Federal agencies, including the Financial Stability Oversight Council, are tasked with publishing reports on the systemic impacts and illicit uses of cryptocurrencies. A similar report from the Federal Reserve had detailed the pros and cons of a central bank digital currency, or fully digitizing the U.S. dollar with a “legal tender” status.
According to the report, the executive order is expected to ensure the U.S. is not left behind, but is a competitive player in the evolving field of digital assets.
Managing Editor, Channelchek
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