The Biden administration is currently working on an executive order which might be issued next month, to establish an initial government-wide approach towards digital assets.
Biden’s Executive Order For Crypto
The news is yet to be confirmed by any official government sources. However, Bloomberg has reported that the executive order is currently being drafted by senior White House officials and will be presented in front of President Biden in the next few weeks. Several meetings are underway to discuss the order, which will reportedly tackle economic, regulatory, and national security challenges posed by cryptocurrencies. Furthermore, several federal agencies, like the State Department and the Commerce Department, will also be roped in to assess the risks and opportunities presented by these digital assets.
Federal Agencies Overtaken By Biden Administration
Currently, only Bitcoin and Ethereum are considered commodities in the US and are overseen by the Commodity Futures Trading Commission (CFTC). Other cryptocurrencies, however, do not have a proper framework in place, leading to the SEC accusing them of being unregistered securities. The Ripple lawsuit is a prime example. Multiple US federal agencies are working on different approaches to regulating cryptocurrencies. If the executive order is released, it will put the Biden administration at the center of crypto legislation in the country.
Fed’s CBDC Whitepaper And Its Implications
The Bloomberg report also highlights that the executive order will also include directives on the issuance of a Digital Dollar or a central bank digital currency (CBDC). The conversation around the Digital Dollar has been recently reawakened by the whitepaper on the same topic released by the US Federal Chair, i.e., the country’s central bank. The paper has addressed matters of functionality and challenges that surround a CBDC in a move to get different agencies to start talking about the Digital Dollar.
The paper and some Democrats have come to the agreement that such a digital currency could help the unbanked populations by providing a safe, digital payment option for households and businesses. Since the Federal Reserve is already discussing the Digital Dollar, it is unlikely that the White House executive order will maintain a rigid directive on the same. The Fed has already maintained that the whitepaper was issued as solely a study into the pros and cons of a CBDC. It has no intention of proceeding with the plans for a Digital Dollar without explicit consent from the White House and Congress.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.