The turmoil in the crypto market is still going on with the effect of the Russia-Ukraine war. While the fluctuations are still expected, the Biden administration is on its way to signing the executive order that will outline the U.S. government’s strategy for cryptocurrencies. The E.O. is expected to be signed this week which is expected to create further fluctuations in the market.
Brief of the Executive Order
The order will include the details that will direct the Federal Agencies to examine the regulatory changes needed in the digital assets. Additionally, it will also focus on such assets’ national security and economic impact. The decision has been taken recently, just after a few weeks when the U.S. and its allies placed sanctions on Russia linked to the use of cryptocurrency.
Biden administration is under pressure
The Executive Order has been in progress since the last year, and the same needs to be filed and reported in the second half of 2022. The key players expected to report include the Financial Stability oversight Council(FSOC). FSOC is incharge of evaluating the probable risks associated with cryptocurrencies. The plan is now taking shape and assigning roles to various agencies across the government, from the State Department to the Commerce Department.
The main reason for this pressure is the increase in crime that involves cryptocurrencies, as per the report from Bloomberg.
Expectations on U.S.-issued central bank digital currency
The White House directive confirms that the Executive Order will also focus on the U.S.-issued central bank digital currency or CBDC. The main reason is that CBDC is expected to hold the dollar dominance when other countries move ahead in the competition.
Condition of the crypto industry in between
While the E.O. will soon be signed, the crypto industry is still under intense scrutiny from lawmakers. The notable names in scrutiny include Senator Elizabeth Warren and Senate Banking Committee Chairman Sherrod Brown. Also, some analysts have raised questions around the crypto workaround effectiveness based on the market size limitations.
The acting director of Treasury’s Financial Crimes Enforcement Network, Him Das, addressed the issue and said that widespread evasions of sanctions using crypto are not seen, but prompt reporting can facilitate national security. It will further offer much-needed help to Ukraine as well.