According to the Bloomberg report, the United States Biden administration is preparing to release an executive order on cryptocurrencies as soon as next month. The order is expected to bring an initial government-wide strategy, assessing the risks and opportunities of digital assets. Though there is no official confirmation on the upcoming executive order, senior administration officials are reportedly attending multiple meetings to discuss the plan.
The draft of the directive is expected to be presented to US President Joe Biden in the coming weeks.
Cryptocurrency regulations in the United States are still in a grey area. Bitcoin and Ethereum are seen as commodities, and any investment product related to them is being overseen by the Commodity Futures Trading Commission (CFTC). However, the situation is different for other cryptocurrencies. The US Securities and Exchange Commission (SEC) also busted several cryptocurrencies, accusing them of being unregistered securities. One of such cases is the ongoing lawsuit against blockchain company Ripple that allegedly raised $1.2 billion by selling unregistered tokens.
The new executive draft will put the Biden administration at the center of crypto legislation.
Other US federal agencies like SEC and CFTC are also studying and drafting regulations around cryptocurrency for years now. The upcoming White House directive will put the Biden administration at the center of crypto legislation. The report also pointed out that the administration might issue some directive on issuing a central bank digital currency (CBDC). However, the prospects of a digital dollar being discussed by the Federal Reserve, any firm position on the matter by the White House is unlikely. The Federal Reserve earlier clarified that it has no intention to proceed with the prospects of a digital dollar without the consent of the White House and Congress.