The US Biden administration is set to release an executive order on cryptocurrencies in February, according to a Bloomberg report released this weekend.
The executive order is expected to be a government-wide strategy which assesses the risks and opportunities of the digital assets.
While no official confirmation on the upcoming executive order is available, Bloomberg reports that senior officials are discussing and drafting a plan which US President Joe Biden will unveil in the weeks ahead.
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Crypto regulations today
Regulations around crypto can be cumbersome and complicated in the US. Bitcoin and Ethereum are viewed as commodities overseen by the Commodity Futures Trading Commission (CFTC), but its unclear where other cryptocurrencies fall.
The Securities and Exchange Commission (SEC), for instance, has an ongoing lawsuit against Ripple which is accused of raising $1,2 billion by selling unregistered tokens.
Given the extensive diversity in crypto, it’s likely that different US federal agencies will craft out a segment of regulatory oversight from the crypto pie. The report pointed out that there may be a directive on central bank digital currency (CBDC) as well. Notably, Jerome Powell has repeatedly stated that he is not against privately created stablecoins like USD Tether.
Still, the digital Dollar is unlikely to make an official entry in February given that the Federal Reserve clarified it will only go ahead with the express consent of the White House and Congress.
A Central Bank Digital Currency could be a way for the USD to remain competitive in a fast-moving currency war across the globe. China’s digital Yuan has set an example that is antithetical to free market capitalism, and various observers have suggested that the US do the ‘opposite of China’ when it comes to regulating crypto.
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