The US Cryptocurrency industry is about to become the target of Biden’s 65th executive order since becoming president in January, a recently released report by Bloomberg suggests.
The order, which is aimed at commissioning federal security and finance agencies to commence investigation into the crypto industry with a view to reporting their findings, is the latest in the efforts of the US government to put a permanent leash around the $2 trillion sector.
Over the past few months, the regulation of the crypto industry has become one of the heated issues for debate, especially in the US, with crypto-skeptic lawmakers calling on the Securities and Exchange Commission (SEC) to provide clear classification, context, and protection for investors.
President Biden has also continued to show a growing interest in the debate, first with his support of a team of Congress members proposing tighter rules for crypto and the nomination of Professor Saule Omarova, a top crypto critic, as the next Comptroller of Currencies.
Part of the reasons for this development can be ascribed to the recent spate of ransomware attacks flooding the US which have been linked to the cryptocurrency industry, since most of the attackers demand their ransom payments in cryptocurrency, thereby strengthening many pessimistic beliefs in the potential for the technology to turn out more harmful than helpful in the long run if it remains unchecked.
With the new development, all concerned federal agencies will be charged to outline their obligations and responsibilities as it regards the private and commercial use of blockchain and crypto technology. Some of the bodies to be responsible for the task are the Commodities and Futures Trading Commission (CFTC), Securities and Exchange Commission (SEC), Department of Treasury, National Security Agency(NSA), and the National Science Foundation (NSF).
The U.S. government may expand its efforts to study and regulate the roughly $2 trillion digital asset sector.
Following the proposed EO, the White House will also be looking into the comprehensive reports of the OCC and FDIC with a view to developing them into an adaptable action plan in the nearest future. Other aspects of crypto reported most likely to be targeted by the forthcoming EO will be the CBDCs also known as Stable coins, to see if their workability has any long-term negative impact on the traditional fiat USD.