US set to issue executive order on cryptocurrency this week

TL;DR Breakdown

• This week, US President Joe Biden will make an announcement regarding cryptocurrency regulation in the country.
• The directive will demand federal agencies to examine possible regulatory charges as well as the economic and security consequences of digital assets for investors.

Later this week, US President Joe Biden is expected to issue a directive on crypto regulation. According to a report by Bloomberg, U.S. President Joe Biden is prepared to sign an awaited executive order on cryptocurrency rules. The order is expected to provide a broad framework for how the U.S. government will handle digital currencies going forward, including defining which agencies will have the regulatory oversight on the assets.

The executive order is also expected to establish a White House task force specifically focused on cryptocurrency and innovation, chaired by Biden. The task force’s goal will be to identify potential risks and opportunities associated with cryptocurrency and related technologies, as well as ways to promote growth in the industry.

Cryptocurrency regulation in US

The government-wide order, which has been in the works since last year, is expected to be announced later this year and will require federal agencies to submit reports on what they’re doing regarding digital assets. Biden’s campaign is under fire to take a more active approach, with industry executives complaining about a lack of clarity on US rules.

The White House’s general crypto views have come under fire once again due to the same reason. According to Bloomberg, analysts and officials have asked how effective a workaround cryptocurrency could be, given that the market is so small.

Russia-Ukraine war speeds up US crypto regulation

The White House has not responded to requests for comment about the executive order. The situation has become more pressing due to Russia’s war on Ukraine, as sanctions, core banking, and cryptocurrency financing have entered the public consciousness. Instead of using military force, the United States and its allies have been engaged in what the Financial Times has termed “financial warfare” against Russia.

Lawmakers have started to question cryptocurrency exchanges and platforms about how they adhere to the U.S. and international sanctions against Russia and Russian-occupied nations and how much pressure they are under to bar specific users from those locations. Furthermore, CoinDesk contacted the White House to verify the news but had not yet received a response as of publication.

The US government is focusing on enhancing digital currencies and blockchain technology to maximize the effect of sanctions imposed on Russia. The official said the administration’s efforts are informed by its prior experiences with sanctions evasion in Iran and Venezuela. The officialS added that additional export restrictions and new sanction targets would be announced in the days and weeks ahead to counter Russian sanction-evasion efforts.

However, the United States has been shifting its position on cryptocurrencies as it was stated previously that local banks could hold crypto. Furthermore, According to reports, a banking authority that had distinguished itself for regulating cryptos was developing a legal way to incorporate them. The agent from the FDIC said that the organization had established a mechanism for connecting them to the national banks. However, the reports being ordered may still spark worries about such a policy or recommend that it be approved by Congress.

Australia is also in the process of developing a regulatory framework for cryptocurrency, with the Australian Securities and Investments Commission (ASIC) revealing its intentions to crack down on fraudulent Initial Coin Offerings (ICOs) in May.

Last year, the Treasury Department released a requirement for individuals to disclose transactions worth more than $10,000 with the IRS. For some time, the order has been just around the corner. Bloomberg predicted in January that it would be signed during the second week of February, while Yahoo Finance stated that President Biden was “expected to sign an executive order next week.”