According to a Bloomberg Report, the Biden Administration in the United States is all set to reveal a government strategy for crypto in February 2022. Additionally, sources say that the White House will task different federal agencies to assess the risks posed by crypto.
Furthermore, senior officials added that several meetings discussed the crypto market plan.
After preparing the executive order, Biden will present the same in the coming weeks. This move will bring clarity to crypto investors.
Past Strategy Of Biden Administration On Crypto
As noted by many experts, the Biden Administration has had a very passive approach to cryptocurrency in the past. The federal authorities in the U.S. have confused crypto investors with their disorganized method.
Robert Cook, the CEO of FINRA, which is responsible for investor protection in the U.S., admits to the scatter-shot approach of Federal agencies.
Cook said that crypto investors are bound to be confused with the presence of different rules by the Securities Exchange Commission, Congress, and other federal regulators.
Forced To Take A Stand
Industry experts have criticized the White House for its lax approach towards crypto in the past. Experts say that regulators have a lack of clarity. Moreover, they are worried about the future value of the dollar.
There are talks in countries like China, Japan, and Sweden to introduce government-backed cryptocurrency or digital currency.
Industry leaders in the U.S. worry that the introduction of Central Bank Digital Currency in these countries could threaten the dominance of the U.S. dollar.
Furthermore, the volatility of cryptocurrencies is another push factor for the U.S. government.
As we speak, the value of Bitcoin has fallen to an all-time low of $37,000. Additionally, there is a massive jump in the number of people entering the crypto industry to invest.
Involving Other Federal Agencies
If we go by the reports, the executive plan involves discussing different aspects of cryptocurrencies. This includes digital assets’ regulatory, economic, and national security challenges.
The Biden Administration will assign tasks related to crypto assessment to different federal agencies. Moreover, these tasks will involve agencies looking at the illegal use of crypto and the impact on the market.
Also, sources say that the Biden Administration is looking at ways to remain competitive as the rise of crypto threatens the dollar value.
However, the executive plan might see changes in the future. The U.S. government is also looking to issue a U.S. government-backed Central Bank Digital Currency (CBDC).
Additionally, the White House released a preliminary paper on the prospect of introducing CBDC on Thursday. However, sources say that the government has no plans to take a firm position.