U.S. President Joe Biden is expected to sign an executive order on cryptocurrencies this week that will mark the first step toward regulating how digital coins and tokens are traded.
The move by the White House comes as administration officials raise concerns about Russia’s use of cryptocurrencies to evade the impact of economic sanctions in response to its invasion of Ukraine.
President Biden’s executive order on cryptocurrencies is expected to be issued this week and has been in the works long before Russia invaded Ukraine.
The order is expected to describe what government agencies, including the U.S. Treasury Department, need to do to develop policies and regulations on digital coins and tokens.
It is also expected to include a request for the U.S. State Department to ensure that American cryptocurrency laws are aligned with those of U.S. allies and will ask the Financial Stability Oversight Council — which monitors the stability of the U.S. financial system — to study illicit finance concerns.
Additionally, the executive order will explore the possibility of a new central bank digital currency. The U.S. Federal Reserve issued a white paper in January that explores the risks and benefits of a U.S.-backed digital currency.
Implicit in the executive order will be that cryptocurrencies will remain a part of the U.S. economy. While U.S. officials have played down the significance of cryptocurrencies to Russia’s ability to evade economic sanctions, it remains a political concern.
