The executive order by the US president would employ government agencies to explore digital assets, blockchain technologies, and regulatory frameworks.
The United States has been debating the implementation of cryptocurrencies for quite some time, with government agencies split somewhat evenly. However, President Joe Biden has seemingly tipped the scales in the favor of crypto over the past couple of weeks.
According to a recent news post, the White House will bring in multiple agencies to explore the ways to implement central bank digital currencies (CBDCs), evaluate the possible risks and advantages of digital money, blockchain-based payment systems, and build a set framework to regulate cryptocurrencies.
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The executive order is said to be released next week, with the Financial Stability Oversight Council (FSOC) leading the charge at evaluating the risks that cryptocurrencies may pose, and the US Department of Treasury tasked to determine how stablecoins would affect the dollar.
Likewise, the US Treasury will look into the security of crypto investors with insight from the Securities and Exchange Commission (SEC), amongst other regulatory figures and financial institutions. This will allow the regulatory authorities to build a proper framework for digital assets, and evaluate the impact that cryptocurrencies may have on the stock market.
From the tech side of things, the Federal Trade Commission and the Consumer Financial Protection Bureau will be tasked to evaluate the transparency of crypto transactions and user privacy, while the Office of Science and Tech will be responsible for creating a distributed ledger.
Finally, the White House will be looking for insight from other countries that are in the middle of developing blockchain technologies, have already deployed their own central bank digital currencies, and have issued rulebooks to regulate cryptocurrencies.
If the report turns out to be true, the United States may be looking to make the crypto industry fully operational, considering the recent report that the US Treasury won’t require tax reports from crypto miners.
On the flip side, earlier reports about the SEC looking to regulate DeFi platforms may suggest that the government plans to keep the digital asset industry under the microscope.
