Biden administration prepares executive order outlining cryptocurrency risks

An initial government-wide strategy on cryptocurrencies is being prepared by the Biden Administration. Federal agencies have been tasked with assessing the risks and opportunities that the new asset class poses.

New crypto directive to be released in the coming weeks

The White House is preparing an executive order that is expected to be released next month. The directive will detail a comprehensive government strategy on digital assets to outline their risks and opportunities.

According to Bloomberg, federal agencies have been tasked with evaluating the risks and opportunities of cryptocurrencies, as they have already been studying the sector for years. 

The Office of the Comptroller of the Currency (OCC), US Securities & Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have already issued guidance letters and statements to suggest how the crypto industry should comply with federal law. However, the agencies have not yet come together to issue a coordinated document.

The executive order will be presented to the United States President Joe Biden in the coming weeks as the government ramps up its efforts to provide guidance on the new asset class.

Bloomberg further revealed that senior administration officials have held multiple meetings on the plan as the White House faces pressure to take a lead on the approach on cryptocurrencies. 

Leading executives in the crypto industry have previously voiced out that the lack of clarity around digital assets in the United States could threaten the dollar’s dominance.

While consumer interest in cryptocurrencies has been increasing in the past year, the digital asset market has recently faced volatility as the recent crash wiped out over $1 trillion in the crypto market.

Cryptocurrencies continue to be vulnerable to massive sell-offs, as seen following the Federal Reserve’s intention to withdraw stimulus from the market.