The Biden administration is reportedly drafting a government-wide cryptocurrency strategy as an executive order. The directive is expected to be presented to President Joe Biden in the coming weeks. The strategy could be released as soon as next month.
US Government-Wide Crypto Strategy
The Biden administration is reportedly preparing to release an initial government-wide strategy on digital assets, including cryptocurrencies. The strategy is being drafted as an executive order, Bloomberg reported Friday, citing people familiar with the matter, who revealed that senior administration officials have held multiple meetings on the plan.
The finalized executive order is expected to be on President Joe Biden’s desk in the coming weeks, the publication conveyed, adding that the strategy could be released as soon as next month.
The directive will detail economic, regulatory, and national security challenges posed by cryptocurrencies. It will direct various federal agencies to weigh in with their assessments of crypto’s risks and opportunities. They will be asked to submit reports of their findings in the second half of 2022.
For example, the Financial Stability Oversight Council will evaluate the possible systemic impacts of digital assets. Another report will determine illicit uses of cryptocurrencies.
The Biden administration is also expected to weigh in on the prospect of the Fed issuing a central bank digital currency (CBDC). On Thursday, the Federal Reserve issued a long-awaited report on CBDC and opened a public comment period until May 20.
Some people have voiced concerns that the U.S. is falling behind other countries, particularly China, in its development of a central bank digital currency. However, Federal Reserve Chairman Jerome Powell has insisted that the U.S. is not falling behind and the U.S. dollar’s status as the world’s reserve currency is not at risk.