The global cryptocurrency market will see US President Joe Biden sign a long-awaited executive order on digital assets this week. The executive order, likely to come on Wednesday, is expected to tackle the growing threat of ransomware and other cybercrime. Sources revealed that it will direct the Treasury, Justice Department, and other agencies to look into the legal and economic ramifications of creating a CBDC.
In 2021, the White House highlighted that it was considering a wide-ranging oversight of the crypto market. Janet Yellen, the US Treasury Secretary, had warned about an explosion of risk from digital markets. But she said that new financial technologies can help fight crime and reduce inequality.
With the order coming into effect, a 180-day deadline for a series of reports on “the future of money” and the role that cryptocurrency will play in the evolving ecosystem.
Sources believe this will give rise to the creation of a central bank digital currency as the Biden administration is seeing a push for it. However, there will be a need for congressional approval.
Moreover, the executive order will have the Justice Department look into whether a new law is needed to create a new currency. The Federal Trade Commission, the Consumer Financial Protection Commission, and other agencies will study crypto’s impact on consumers.
Meanwhile, there is a tussle between agencies wanting to supervise digital assets. Rostin Behnam, the chair of Commodity Futures Trading Commission, had told a Senate committee hearing last month that the CFTC and the Securities and Exchange Commission (SEC) should share the responsibility. But Michael Fasanello, the director of training and regulatory affairs at Blockchain Intelligence Group, has called for a new body to be set up with oversight powers over multiple partner agencies. However, SEC Commissioner Hester Pierce believes a new regulator in an already fragmented regulatory system should not be a top priority.