White House reportedly is seeking a central policy role on crypto
The Biden administration reportedly is preparing an executive order concerning cryptocurrencies, to be issued as early as sometime in February 2022. In preparation, various federal agencies are assessing the risks and opportunities posed by digital currencies, and senior administration officials have held a series of meetings on the matter, sources indicate.1
The news about the executive order emerged a day after the Federal Reserve Board (FRB) released a discussion paper that explores the pros and cons of creating a central bank digital currency (CBDC) for the U.S., which seeks public comment through May 20, 2022. The White House apparently is looking to seize the initiative, taking a central role in setting U.S. government policy on cryptocurrencies.
KEY TAKEAWAYS
The Biden administration reportedly is preparing an executive order regarding cryptocurrencies.
A key goal of the order is to develop a coordinated policy response from all agencies and departments within the U.S. federal government.
Maintaining U.S. leadership in the global economy is another goal.
The order may be issued as early as February 2022.
News about the order came a day after the Fed released a report on the pros and cons of creating a U.S. central bank digital currency (CBDC).
Political Imperative
Federal agencies reportedly have been studying digital currencies and possible policy and regulatory responses to them for several years, but not in a concerted and coordinated fashion. Meanwhile, this fragmented effort and the attendant lack of clarity about the overall direction of U.S. policy has been a source of frustration to participants in the growing cryptocurrency market. Also, some observers are concerned that decisions by other major nations to issue CBDCs may threaten the dominance of the U.S. dollar in the global economy.1
The Office of the Comptroller of the Currency (OCC), the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC) are among the regulatory bodies within the U.S. federal government that have issued guidance letters, released informal statements, or engaged the public in rule-making efforts regarding how the emerging crypto industry should comply with federal laws and regulations. However, these efforts have not been coordinated so far.
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