The United States President, Joe Biden, is reportedly preparing to sign an executive order which may seek to study the legal and economic consequences of creating a U.S. central bank digital currency (CBDC).
The Russia-Ukraine war has exhibited the myriad roles of cryptocurrencies in fostering new financing methods whether it is meant for donations or circumventing sanctions. Since Russian forces invaded Ukraine, cryptocurrency donations for Ukraine witnessed an astronomical support raising more than $14.2 million. This seemed to be the first time government officials asked for crypto contributions.
The American government officials are growing increasingly aware of the potential for cryptocurrencies to lessen the impact of sanctions and are stepping up their scrutiny of digital assets. In the latest development, Joe Biden is all slated to bring an executive order related to the crypto market by this week.
What Does The Executive Order Say?
According to reports, President Biden is expected to propose a “wide-ranging oversight of the cryptocurrency market including an executive order to deal with the growing threat of ransomware and other cybercrime.” The report stated that the US Government will also direct the Treasury, the Department of Justice, and other government agencies to outline a possible scenario on how the nation could adopt a central bank digital currency. Although, the order had been in the pipeline for sometime, the US President had to delay the order because of the Russia-Ukraine crisis.
The executive order will direct the Justice Department to look at whether a new law is needed to create a new currency, with the the Federal Trade Commission, the Consumer Financial Protection Commission and other agencies to study the impact on consumers. The other aspect of the study will be on the impact of a cryptocurrency on competitiveness, the market and technical infrastructure needed, and the environmental impact of bitcoin mining.
Recently, The Financial Crimes Enforcement Network (FinCEN) warned financial institutions to watch out for potential attempts by Russian entities to evade sanctions imposed by Washington over Moscow’s invasion of Ukraine.
Regulatory Authority To Oversee The Crypto Market
Last month, Commodity Futures Trading Commission (CFTC) chairman, Rostin Behnam, told a Senate committee hearing his agency wanted to be charged with regulating the crypto spot market. During that hearing, Benham was asked whether a lead agency for regulating crypto should be established and said that his agency, along with the Securities and Exchange Commission (SEC), should share the responsibility.
