It is announced that U.S. President Joe Biden is going to sign an executive order that will redefine the government’s stance on cryptocurrencies. The order is expected to instruct federal agencies to consider potential legislation changes, particularly in regards to the impact of digital assets on national security.
The crypto regulation in the U.S. recently came into the spotlight, as several senators rose the question of whether Russian citizens and organizations could use cryptocurrencies to evade international sanctions.
Since then, the Biden administration has been under pressure to clarify the rules regarding the crypto industry. The announced executive order has been written for almost a year and is expected to define specific roles for various agencies across the government. Also, the document addresses the possibility of a CBDC (central bank digital currency). However, the question of CBDC is probably going to be postponed for the moment, as the Federal Reserve is still in the process of researching the implications.
Meanwhile, the public pressure is heavy on the crypto industry as well. Several lawmakers claim that there is reason to believe that Russians can turn digital assets into tools for bypassing sanctions.
The industry’s reply so far was that the crypto market is way too limited in order to affect the impact of the sanctions, but that the companies would be happy to report any suspicious activities in case they occur.