President Joe Biden will sign an executive order this week on a US cryptocurrency strategy. This follows concerns that Russia continues to use cryptocurrency to evade Western restrictions.
The planned EO will hopefully address current shortcomings in US crypto policy. In addition, the order will also examine the possibility of a digital dollar.
Biden’s Executive Order Outlines US Cryptocurrency Strategy
The EO will shape the US cryptocurrency strategy moving forward. It will seek federal agencies to study potential regulatory changes for digital assets.
Also, the order will examine crypto trading’s impacts on the economy and national security. During the last few weeks, many expected the US to revisit its strategy. Recently, the West slapped Russia with crippling financial sanctions.
However, many believed that Moscow is circumventing the embargo through crypto. At the same time, many local executives gripe that the US sorely lacks clarity on guidelines.
In fact, the federal government’s planned executive order on crypto started last year. Now, the EO will formally ask federal agencies to report on digital currency activities.
From the State to Commerce, the planned executive order will assign roles for everybody involved with crypto.
US Digital Dollar As Part of Cryptocurrency Strategy
Industry insiders are also expecting Biden’s executive order to address the possibility of a digital dollar. The US is seriously contemplating the issuance of a Central Bank Digital Currency (CBDC).
However, the idea remains in the embryonic stage, as the Federal Reserve would like more time to study the idea.
However, the Fed already acknowledged that a CBDC can help maintain the dollar’s dominance in global markets. The US will also need to keep up with the rest of the world. China, for example, already adopted a digital currency that’s in use across the countryside.
Can Cryptocurrency Bypass Sanctions?
Meanwhile, Democratic lawmakers are taking a closer look at the loopholes provided by digital assets.
Senators Elizabeth Warren (D-MA) and Sherrod Brown (D-OH) want to investigate if Russia is using cryptocurrency to bypass economic sanctions.
Analysts and officials dismissed the senators’ concerns. The limited market size makes workaround crypto impractical.
Him Das of the Financial Crimes Enforcement Network addressed the issue on Monday. He said that the agency has yet to confirm widespread evasions of sanctions via crypto use.
However, Americans should still report suspicious crypto activity. This can help national security and Ukraine support efforts.
Watch the Yahoo Finance video reporting that President Joe Biden expected to issue an Executive Order on regulating crypto:
Do you agree that the US needs a cryptocurrency strategy to cover the trading of digital assets? Also, is this the best time to deal with cryptocurrency regulation?
Will you trade in cryptocurrency if the government provides better regulatory guidelines?
Share your thoughts in the comments section below.