President Joe Biden’s administration is considering an executive order on cryptocurrency oversight. Bloomberg reported this on Friday (Oct 8), citing unnamed sources.
According to the spokeswoman, this move will help mitigate the increasing threat of ransomware and other cybercrimes. This comes amidst heated debates by the U.S. regulators on the best ways to oversee the growing cryptocurrency market.
The proposed order states that federal agencies would be assigned to research relevant crypto sectors. The agencies would then use the results to come up with recommendations on areas such as financial regulation, economic innovation, and national security.
Bloomberg reported that officials are considering appointing a White House Crypto Czar to oversee digital currencies. Czars (informal title) are high-ranking officials in the executive branch who focus on specific issues.
The Biden administration has been working on regulating cryptocurrency
Biden’s administration has made significant efforts to regulate cryptocurrency. Previously, we have seen agencies such as the U.S. Treasury announce new guidelines to combat the growing digital currency ransomware.
Further, the administration also established a National Cryptocurrency Enforcement Team (NCET) to investigate crypto criminal activity.
A couple of weeks ago, President Joe Biden announced that the top U.S. national security advisers would gather officials from thirty countries to develop a plan to fight the growing threat of ransomware. Biden stated that the chief aim is to improve law enforcement collaboration on issues like the illicit use of digital currency.
According to regulators, the U.S. Federal Reserve has been investigating stablecoins.
Why is the executive order important?
When the executive order passes, it will clarify different agencies’ roles and give them responsibilities to examine crypto and report to the governor’s office.
In addition, there will be participation from agencies like the Treasury Department, the Commerce Department’s financial regulators, and the National Science Foundation.
As part of their evaluation of digital assets, the agencies will consider concerns such as consumer protection, competition policy, and research and development.
No decision has been made yet regarding the release of the executive order. However, an official stated that should President Joe Biden choose not to move forward with the executive bill, the administration will still allow the overall strategy for cryptocurrencies to be made public.
