The primary points of US President Joe Biden’s intended executive order on crypto legislation were disclosed by the White House on Wednesday. The decree will recognise and control digital assets in the country, as well as encourage the formation of a digital currency issued by the central bank (CBDC). According to a White House release, the order would focus on protecting investors, limiting unlawful activity through crypto, and spurring the development of digital payment systems. Later in the day, Biden is expected to sign the order.
The decree is the first time the US government has taken action on crypto legislation at the federal level. While the declaration did not specify any specific restrictions for cryptocurrencies, it did direct federal authorities to collaborate in the space’s development.
In the aftermath of the Russia-Ukraine crisis, regulators are increasingly focused on cryptocurrencies. Not only was this the first time a country requested crypto donations, but it also aroused fears that sanctioned entities could use crypto to circumvent regulations. This is a key issue of Biden’s proposed order, which aims to create an international framework to decrease the risk of under-the-table digital asset transactions.
The decree also encourages the Federal Reserve to create a CBDC and strives to promote co-development with other countries. With the launch of the digital yuan at the Winter Olympics, China was one of the first countries to introduce a digital currency this year.
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