The White House announced the core components of US President Joe Biden’s intended executive action on crypto legislation on Wednesday. The decree will recognize and control digital assets in the country, as well as encourage the creation of a central bank digital currency.
According to a White House release, the order would focus on protecting investors, limiting unlawful activity through crypto, and spurring the development of digital payment systems. Later in the day, Biden is expected to sign the order.
The order is the first time the federal government in the United States has addressed crypto legislation. While the announcement did not specify any specific restrictions for cryptocurrencies, it did direct federal agencies to work together to grow the field.
The action comes as regulators increase their emphasis on cryptocurrencies in the aftermath of the Russia-Ukraine crisis. Not only was the battle the first time a country openly requested cryptocurrency donations, but it also prompted concerns about sanctioned entities possibly using cryptocurrency to circumvent constraints.
This is a key element in Biden’s intended order, which tries to build an international framework to decrease the danger presented by under-the-table digital asset transactions.
The directive will also support the Federal Reserve’s development of a CBDC and wants to promote co-operation with other countries. With the launch of the digital yuan during the Winter Olympics this year, China was among the first countries to introduce a digital currency.
The Treasury released a paper on the “future of money.”
According to the order, Treasury Secretary Janet Yellen will publish a report on the “future of money” and payment systems, particularly in light of rising demand for digital currencies.
Details from Yellen’s statement, which leaked on Tuesday, corresponded to material published by the White House. Yellen stated that the Treasury will work with many government agencies, as well as consumer and investor advocacy groups, to produce the report.
The order allays fears that the government may take a hard position against cryptocurrency, despite recent comments from Senators like as Elizabeth Warren. On Tuesday, markets reacted positively to the disclosed information, with Bitcoin rising more than 6% past $42,000.