According to reports, the Biden administration is ready to issue an initial government-wide policy on cryptocurrency. Bloomberg recently reported that the policy is being prepared as an executive order, and people familiar with the specific subject have attended many discussions on the idea. The final executive order is likely to be on President Joe Biden’s desk in the coming weeks, according to the journal, which also stated that the plan might be disclosed as soon as next month.
The directive will go into depth on various security risks which can be created by cryptocurrencies. They will direct multiple federal departments to reduce the risks of cryptocurrencies. In the second half of 2022, they will be required to provide reports on their results.
For example, the Financial Stability Oversight Council will analyse the possible systemic impact of digital assets. Another report will look into the illegal usage of cryptocurrency.
The Biden administration is also likely to comment on the possibility of the Fed launching a digital currency (CBDC). The Federal Reserve released a long-awaited study on CBDC on Thursday and opened a public comment period through May 20.
