On Wednesday, U.S. President Joe Biden issued a long-awaited executive order directing various federal agencies to coordinate on policy for digital assets. We believe thats an important part of building a more equal society. Biden's order sets an 180-day deadline for a series of reports on "the future of money" and the role that cryptocurrencies will play in the evolving landscape. The transformation of value in the digital age. The forthcoming executive order could provide markets regulators with more ammunition to bring cryptocurrencies under their domain, analysts say. The directive calls on the government to assess the potential to develop a central bank digital currency essentially a digital dollar that would be used to modernize payment systems. Instead, the order directs several federal departments to analyze the potential benefits and risks of cryptocurrencies while charting a path for responsible innovation, senior administration officials said Tuesday. Joe Bidens new crypto executive order, explained - Vox According to the White House Fact Sheet for the order, the government is looking at these issues, among others: The risks to financial stability created by private cryptocurrencies, Any risks to national security created by cryptocurrencies, Issues surrounding using cryptocurrency to enable crime, Environmental impacts involved with energy-intensive cryptocurrency mining, The effects of cryptocurrency on economic competitiveness. Something went wrong. (c) Within 120 days of submission to the Congress of the National Strategy for Combating Terrorist and Other Illicit Financing, the Secretary of the Treasury, in consultation with the Secretary of State, the attorney general, the Secretary of Commerce, the Secretary of Homeland Security, the director of the Office of Management and Budget, the director of National Intelligence and the heads of other relevant agencies shall develop a coordinated action plan based on the strategys conclusions for mitigating the digitalasset-related illicit finance and national security risks addressed in the updated strategy. Sec. Biden To Sign Executive Order Boosting US Contraception Access Be a smarter, safer investor in eight weeks. A senior Biden administration official who detailed the contents of the executive order but was not authorized to speak about it publicly told reporters on Tuesday evening that work on it had predated the Ukraine war. long-awaited executive order about cryptocurrency, spent months warning about impending oversight. The White House last year said it was considering a wide-ranging oversight of the cryptocurrency market - including an executive order - to deal with growing threat of ransomware and other cyber crime. Oops. U.S. Treasury Secretary Janet Yellen last year warned about an "explosion of risk" from digital markets, including the misuse of cryptocurrencies, but said new financial technologies could also help fight crime and reduce inequality. The Office of the Comptroller of the Currency (OCC), Securities and Exchange Commission and Commodity Futures Trading Commission. Still, this effort signals that at the very least, Biden thinks crypto is a serious part of the US economy and that it might even have some potential. The report should also address the effect of cryptocurrencies consensus mechanisms on energy usage, including research into potential mitigating measures and alternative mechanisms of consensus and the design tradeoffs those may entail. Federal agencies will now have months to review and prepare an assessment of these fast-growing digital currencies. The evaluation shall be coordinated through the interagency process described in section 3 of this order. First, advertising dollars go up and down with the economy. After all, we dont know what these new rules will eventually say or if theyll ultimately support or stifle crypto usage in the US. WASHINGTON President Biden signed an executive order on Wednesday directing the federal government to come up with a plan to regulate cryptocurrencies, recognizing their popularity and potential to destabilize traditional finance. Biden Issues Executive Order on Birth Control 1 Year After Roe v US President Joe Biden announces a ban on US imports of Russian oil and gas, March 8, 2022, from the Roosevelt Room of the White House in Washington, DC. Several other countries, including China, are developing digital versions of their currencies that can be held, sent and used for payment. Dr. Judy is a Prophet, Pastor and Life Coach. What The Biden Administration's Executive Order Means For While increasing regulation validates cryptocurrency, the new executive order also explores the potential for a central bank digital currency, another move that would create further confidence. The industry leader for online information for tax, accounting and finance professionals. The biggest crypto news and ideas of the day. Biden signed an executive order Wednesday directing the federal government to study the impact of cryptocurrencies on American consumers, investors and businesses. A desert fungus that infects humans is spreading. (d) Within 120 days following completion of all of the following reports the National Money Laundering Risk Assessment; the National Terrorist Financing Risk Assessment; the National Proliferation Financing Risk Assessment; and the updated National Strategy for Combating Terrorist and Other Illicit Financing the Secretary of the Treasury shall notify the relevant agencies through the interagency process described in section 3 of this order on any pending, proposed or prospective rulemakings to address digital asset illicit finance risks. WASHINGTON, March 7 (Reuters) - U.S. President Joe Biden is expected to sign a long-awaited executive order this week directing the Justice Department, Treasury and other agencies to study the legal and economic ramifications of creating a U.S. central bank digital currency, a source familiar with the matter said on Monday. (vi) The chair of the SEC, the chairman of the CFTC, the chairman of the Federal Reserve, the chairperson of the Board of Directors of the Federal Deposit Insurance Corporation and the Comptroller of the Currency are each encouraged to consider the extent to which investor and market protection measures within their respective jurisdictions may be used to address the risks of digital assets and whether additional measures may be needed. The verbatim text from the White House briefing room appears below. (iii) While the United States held the position of president of the 2020 G-7, the United States established the G-7 Digital Payments Experts Group to discuss CBDCs, stablecoins and other digital payment issues. Administration officials, who detailed the digital currency portion of the order for reporters on Wednesday, said the Feds earlier report provided a strong foundation but did not attempt to resolve some of the trickier issues surrounding a digital dollar, including its design and issuance. The verbatim text 8. See here for a complete list of exchanges and delays. Cryptocurrency Regulation: Biden Considers Executive Order for A United States CBDC that is interoperable with CBDCs issued by other monetary authorities could facilitate faster and lower-cost cross-border payments and potentially boost economic growth, support the continued centrality of the United States within the international financial system and help to protect the unique role that the dollar plays in global finance. Please enter a valid email and try again. Exclusive news, data and analytics for financial market professionals, Reporting by Andrea Shalal in Washington 7. Bidens executive order on cryptocurrency heres what it means for you, US Supreme Court backs man who sent female musician flood of unwanted messages. President Joe Experts say that regulation and a longer-term strategy help validate the cryptocurrency sector, at least its good actors and not those interested in engaging in illegal activities. (b) Consistent with the goals stated in section 5(a) of this order: (i) Within 180 days of the date of this order, the Secretary of the Treasury, in consultation with the Secretary of Labor and the heads of other relevant agencies, including, as appropriate, the heads of independent regulatory agencies such as the FTC, the SEC, the CFTC, federal banking agencies and the CFPB shall submit to the president a report, or section of the report required by section 4 of this order, on the implications of developments and adoption of digital assets and changes in financial market and payment system infrastructures for United States consumers, investors, businesses and for equitable economic growth. President Biden (Office of the President of the United States, modified by CoinDesk). The move, according to the Biden administration, is a response to the explosive growth in digital assets, the increasing number of countries exploring central bank digital currencies and a desire to maintain American technological leadership. See here for a complete list of exchanges and delays. Each week, we explore unique solutions to some of the world's biggest problems. Probing the intersection of crypto and government. However the reports being ordered could still raise concerns about such a move, or conclude that it would require congressional approval, the source cautioned. Not everyone is happy about Bidens more welcoming stance on crypto. Policy and Actions Related to Fostering International Cooperation and United States Competitiveness. This framework should reflect ongoing leadership by the Secretary of the Treasury and financial regulators in relevant international financial standards bodies and should elevate United States engagement on digital assets issues in technical standards bodies and other international fora to promote development of digital asset and CBDC technologies consistent with our values. President Bidens executive order helps kick off the U.S. governments serious analysis of cryptocurrency, an assessment that should ultimately lead to laws and regulations that establish a set of ground rules for the industry. The directive would place the White House in a central role overseeing efforts to set policies and regulate digital assets, Bloomberg reported. Based on the potential United States CBDC design options, this report shall include an analysis of: (i) the potential implications of a United States CBDC, based on the possible design choices, for national interests, including implications for economic growth and stability; (ii) the potential implications a United States CBDC might have on financial inclusion; (iii) the potential relationship between a CBDC and private sector-administered digital assets; (iv) the future of sovereign and privately produced money globally and implications for our financial system and democracy; (v) the extent to which foreign CBDCs could displace existing currencies and alter the payment system in ways that could undermine United States financial centrality; (vi) the potential implications for national security and financial crime, including an analysis of illicit financing risks, sanctions risks, other law enforcement and national security interests, and implications for human rights; and (vii) an assessment of the effects that the growth of foreign CBDCs may have on United States interests generally. We must reinforce United States leadership in the global financial system and in technological and economic competitiveness, including through the responsible development of payment innovations and digital assets, said Biden in the order. Will you support Voxs explanatory journalism? The fact that the U.S. president has something to say about crypto is meaningful, said Kristin Smith, the executive director of the Blockchain Association, an industry trade group. 2. Reader support helps keep our explainers free for all. We accept credit card, Apple Pay, and Were operating in a gray zone and in a sandbox., He added, Weve seen a complete lack of any strategic direction or thought from the federal government for years.. (e) The term stablecoins refers to a category of cryptocurrencies with mechanisms that are aimed at maintaining a stable value, such as by pegging the value of the coin to a specific currency, asset, or pool of assets or by algorithmically controlling supply in response to changes in demand in order to stabilize value. How Bidens executive order on cryptocurrency may impact the (b) In furtherance of the policy stated in section 8 (a) of this order: (i) Within 120 days of the date of this order, the Secretary of the Treasury, in consultation with the Secretary of State, the Secretary of Commerce, the administrator of the United States Agency for International Development, and the heads of other relevant agencies, shall establish a framework for interagency international engagement with foreign counterparts and in international fora to, as appropriate, adapt, update and enhance adoption of global principles and standards for how digital assets are used and transacted, and to promote development of digital asset and CBDC technologies consistent with our values and legal requirements. Most news outlets make their money through advertising or subscriptions. The executive order doesnt change how the US approaches crypto in the immediate future, but it will start the process of creating regulations for digital currencies. Half the world is at risk of dengue. Biden Takes Step Toward Regulating Cryptocurrencies With this move to put regulations in place, we are going to have more market participants, increased interest and activity which I think is a great thing.. In contrast, a digital dollar would have the backing of the U.S. government. Inadequate AML/CFT regulation, supervision and enforcement by other countries challenges the ability of the United States to investigate illicit digital asset transaction flows that frequently jump overseas, as is often the case in ransomware payments and other cybercrime-related money laundering.
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