President Biden to issue crypto executive order next week

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[Blockchain Today Correspondent Han Ji-hye] U.S. President Joe Biden will introduce an executive order directing government agencies to study the details of the cryptocurrency industry, Cryptopotato reported on the 20th (local time). .

Cryptopotato predicted that this executive order would also urge the establishment of regulations in the digital asset field, given that President Biden imposed numerous regulations from the beginning of his administration. It is also speculated that reference will be made to the central bank digital currency (CBDC), the order of which is expected to be announced next week.

According to reports, the executive order of the US president is a directive signed, written and issued by the US president who manages the operation of the federal government.

It is known that US President Joe Biden has signed 80 executive orders since taking office until the 15th.

Democrats can ask the U.S. Department of the Treasury, State Department, Department of Justice, and Homeland Security to design a framework for comprehensive regulations for related industries, which are obliged to develop reports on the future of money and payment systems.

In response, many cryptocurrency proponents are arguing that “Fiat currencies are gradually losing their value due to global inflation. Cryptocurrencies will be a more attractive option for investors.” He also argues that “the world will become increasingly digital, with Bitcoin and altcoins taking center stage.”

Reportedly, Biden’s executive order could be considered as a measure to protect consumers, businesses and investors. In particular, these guidelines are oriented towards transparency and are likely to require improved Know Your Customer rules. The customer confirmation system refers to a system that has been implemented since 2006 to block illegal money transactions and prevent money laundering that meets international standards.

In addition, the Biden administration is likely to work with other countries to standardize cryptocurrency regulations, and many are currently undecided on whether US lawmakers will specifically introduce cryptocurrency legislation or treat them as traditional financial assets such as stocks and bonds. It is reported that there is great interest.

Meanwhile, in 2018, former President Trump signed a directive banning U.S.-based financial transactions involving Venezuela’s Petro cryptocurrency. Also in 2015, former President Obama allowed executives to confiscate digital assets related to critical malicious cyber activity.

However, unlike China, the US government does not appear to have any intention of banning all cryptocurrency activity, Cryptopotato reported. In October 2021, Fed Chairman Jerome Powell warned that “the cryptocurrency sector needs oversight” and that “stablecoins are assets that require special regulation.”

A few days later, Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), reaffirmed this position. Earlier this year, Gensler commented on cryptocurrency exchanges, arguing that the “Washington Financial Supervisory Service should directly regulate those exchanges.”

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