According to agency reports Bloomberg, The White House is ready to initiate a crypto regulation strategy in the United States.
The administration of US President Joe Biden is preparing to launch a initial whole-of-government strategy in relation to digital assets in February and task federal agencies with assessing the risks and opportunities they pose, they told Bloomberg people familiar with the matter.
According to information from the news agency, senior administration officials have held multiple meetings on the plan, which is being drafted as an executive order. The directive, which would be presented to President Joe Biden in the coming weeks, places the White House at the center of Washington’s efforts to deal with cryptocurrencies.
Bloomberg highlights that federal agencies have taken a scattershot approach to digital assets in recent years. Therefore, the Biden team faces pressure to lead the issue.
On the other hand, many industry executives have said that more clarity is needed in the US rules. On the other hand, others fear that China and other nations will adopt central bank digital currencies (CBDCs), which could threaten the dollar dominance.
The report of Bloomberg only has voices off the record, Nameless. Authorized White House spokesmen declined to comment to the outlet.
Just when Bloomberg released this report (on Friday) there has been a bigger drop for cryptocurrencies. Bitcoin, for example, has a drop between Friday the 21st and today of around 20%. Today it is priced at USD $33,442, according to data from Cryptomarkets.It should also be noted that a report on Thursday, January 20, from another great power, Russia, also alarmed investors: the central bank of that enormous nation calls for a ban on cryptocurrencies.
However, it is worth noting that this is not the path proposed by the United States, which has always talked about regulations, not prohibitions.
According to the Bloomberg report, based on people who asked not to be named but who have participated in the discussions, the late-stage draft of the executive order details the economic, regulatory, and national security challenges posed by cryptocurrencies. Various agencies will intervene with reports.
One such study would come from Financial Stability Oversight Board, a group that includes the heads of Washington’s top financial watchdogs, looking at the potential systemic impacts of digital assets. Another government report would analyze the illicit uses of virtual currencies.
Meanwhile, the directive would also require other agencies to step in, creating roles for everyone from the State Department to the Commerce Department. Some of these tasks will be destined to ensure the US remains competitive as the world increasingly embraces digital assets.
The administration’s plan, including the directives in the order, could be further modified before it is finalized, the people warned.
Possibility of CBDC
The administration is also expected to assess the possibility of the US issuing a central bank digital currency, CBDC, the people familiar with the talks said. But, according to one of the people, the administration is likely to refrain from taking a strong position, as the Fed is still considering the issue. They say a CBDC could be a way for the US to remain competitive in the face of explosive growth in cryptocurrencies and private currencies produced by other nations, including China. The Fed said it does not intend to move forward without the support of the White House and Congress.
Already in December, Bloomberg had glimpsed that this would be the year of crypto regulation in the United States.
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