Biden to Sign Long-Anticipated Crypto Executive Order This Week: Report

Key Insights:

• Biden to sign an executive order this week outlining the U.S.’s plans for cryptocurrency.
• The order will assign federal agencies with examining regulatory changes, national security.
• The plan will involve the Treasury, State, and Commerce Departments.

President Joe Biden will reportedly sign the executive order for cryptocurrencies this week to strengthen regulatory measures, sources familiar with the matter told Bloomberg.

Crypto Executive Order: What to Expect

The Biden order comes amid pressing concerns about using cryptocurrencies such as Bitcoin by Russian elites to circumvent the sanctions imposed against Russia over its Ukraine invasion.

In the long-anticipated crypto order, federal agencies will be directed to oversee a series of studies over the next nine months, Reuters reported. Studies include digital assets regulation, national security, and the economic impact of digital assets.

The source also told Reuters,

“We could see a significant shift in policy in 180 days. This is a likely step toward the creation of a central bank digital currency,” 

The Biden order will key in digital currency study inputs from the Treasury Department, Justice Department, Commerce Department, Department of Homeland Security, and others.

For instance, the order will task the Justice Department to study if new legislation is required for a digital dollar. The Environmental Protection Agency will conduct a study on the impact of bitcoin mining.

The Biden administration recently requested crypto exchanges, including Binance, FTX, and Coinbase, to help ensure that Russians are not turning to crypto to escape U.S. sanctions.

Industry Consider Ways To Limit Crypto Use To Evade Sanctions

Western sanctions that aim to squeeze Russia’s economy have sent the Ruble to historic lows and have closed the country’s stock market. On top of that, the U.S. has barred Americans from doing business with Russian banks, oil and gas developers, and other companies.

Global crypto markets have grown rapidly since then, enabling nations worldwide to take measures to ensure that cryptos are not used to evade financial sanctions.

U.S. Senator Elizabeth Warren called upon U.S. regulators to clamp down the use of crypto to evade sanctions by saying,

“Cryptocurrencies risk undermining sanctions against Russia, allowing Putin and his cronies to avoid economic pain,” 

Many of the world’s largest crypto exchanges, including Binance, Coinbase, Kraken, have stopped short of a blanket ban on Russian users. They said that they would block users targeted by sanctions.

The U.S. officials are increasingly aware of the potential for digital currencies to lessen the impact of sanctions and are stepping up their scrutiny of crypto assets.