US to Define Cryptocurrency Strategy

(photo credit: Uni of Pennsylvannia)

According to people familiar with Biden administration’s plans, the President is set to sign an executive order this week that will outline the US government’s strategy for cryptocurrencies.

The Biden administration is under pressure to play more of a coordinating role in Washington’s approach to the asset class, as industry executives bemoan what they say is a lack of clarity on rules. The executive order, which has been in the works since last year, will require federal agencies across the government to report later this year what they’re doing regarding digital tokens.

The order will direct federal agencies to examine potential regulatory changes, as well as the national security and economic impact of digital assets. The White House’s approach to crypto has attracted fresh attention in recent weeks after the US and its allies levied sanctions on Russia, prompting concerns that organizations and individuals could use crypto to evade the restrictions.

The plan is expected to begin carving out roles for agencies across the government, from the State Department to the Commerce Department.

The White House’s directive is also expected to address the possibility of a US-issued central bank digital currency, or CBDC, though it’ll likely hold off on taking a firm position because the Federal Reserve is still studying the issue. The central bank in January said a CBDC could help preserve the US dollar’s dominance.

The top cryptocurrency bitcoin rose 2 percent on Tuesday after falling below US$38,000 on Monday.

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