Biden Crypto Executive Order – The Whole of Government Approach
There’s a lot of uncertainty about the implications of a Biden crypto executive order, which was signed on March 9 by the vice president. The White House has a meticulous process for creating executive orders, and it’s unclear how this particular one will affect crypto markets. This article will discuss the ‘Whole of government approach’ and the study of the potential impact on financial stability and national security.
The recent presidential order on cryptocurrency has met with mixed reviews from crypto experts and the markets. Bitcoin’s price rose more than 10% after the announcement, but the order also drew criticism from critics who lambasted the administration for not taking action sooner, and who dismiss any governmental attempts to regulate the industry.
Study of impact on financial stability and national security
President Biden signed an executive order today to study the impact of crypto on financial stability and national security. According to the order, federal agencies should examine how cryptocurrency will affect financial institutions, establish standards for overseeing digital assets, and develop new regulations if necessary. The order is the first of its kind for the United States and could boost U.S. competitiveness, according to top government officials.
The Biden Administration recently issued an executive order on cryptocurrencies and virtual value, which charts a course for regulation and oversight of virtual value. The order connects more than a dozen government agencies focused on financial crime, treasury, trade, and terror finance. It should be required reading for financial crime compliance professionals.
Tether’s dollar-backed status
Recently, the Securities and Exchange Commission (SEC) took a critical look at crypto assets, including Tether. Stablecoins, like Tether, have drawn regulatory ire for their lack of transparency about their backing. However, the recent attestation report from Tether has provided some clarity.
Regulation of Tether
The President’s Working Group on Financial Markets recently called for the Financial Stability Oversight Council to study the regulation of stablecoins. These are coins that are tied to a reserve asset, but are not issued by a central bank. One example of a stablecoin is Tether, which is backed by a single asset, the US dollar. According to the group, stablecoins should only be issued by insured banks to gain more regulatory oversight.
While the executive order isn’t aimed at Tether, it does address illegal activity in the crypto space. The framework contains 16 references to risk and aims to protect America’s core democratic values. In May, Janet Yellen told Congress that stablecoins “can run”, and urged regulators to treat digital assets like banks. However, industry participants have objected to that stance.
President Joe Biden’s crypto executive order is expected to take effect sometime in the next few weeks, which will be a significant step for the digital asset industry. It will give federal agencies 60 to 120 days to examine and make recommendations on the future of digital assets. The order also aims to create a framework for government-wide regulation of the asset class.