President Biden to Sign New Executive Order to Regulate Crypto Companies

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Multiple news outlets have confirmed that US President Joe Biden is scheduled to sign an executive order this week on cryptocurrency. It would effectively direct various US federal agencies to develop regulations, policies, and initiate an investigation into many digital currencies.

News outlets have indicated that President Biden is expected to sign new executive order on Wednesday, March 9, 2022. It would mark the first major step from the White House to regulate cryptocurrency.

The new executive order will reportedly engage most of the federal agencies to encounter digital currencies. It will also direct US Treasury, State, and Commerce departments to develop essential policies and regulations for the cryptocurrency market.

New Executive Order for Digital Currencies

The upcoming executive order will urge the US State Department to ensure the perfect measures for cryptocurrency. The Department will make sure that laws for digital currencies are aligned for Americans and US allies. The new order from the Washington administration will also give tasks to the Financial Stability Oversight Council.

However, the council will identify major risks in the financial stability of the country and initiate an investigation into financial issues. The Council will also request the US Department of Justice, Consumer Financial Protection Bureau, and other federal agencies.

They will find out if a new law is essential to regularize a new digital currency. The new order announcement came after raising concerns that Russia could use the currency. Experts believe that Russia can use digital currencies to handle the situation after imposing the US sanctions.

Janet Yellen urged to monitor Digital Currency

Last week, US Treasury Secretary Janet Yellen issued a press statement. She said the US will continue to find out the effectiveness of imposed sanctions. The department will also evaluate if there is any loophole and address them more efficiently.

Yellen also said that she often hears issues about cryptocurrency and this channel will be watched very carefully. She said the cryptocurrency has motivated and attracted more investors around the world to deal with digital currencies.

Moreover, the Financial Crimes Enforcement Network (FCEN) issued an advisory in a statement on Monday. The agency advised that all financial institutions in the country should be watchful and attentive against potential efforts. These alleged efforts could shake more effective imposed sanctions following the Russian invasion of Ukraine.

FCEN criticized Strict Regulations

The acting Director of FCEN, Him Das issued a statement. He said the agency didn’t discover that a widespread avoidance of the newly imposed sanctions is using cryptocurrency. It has prompted reporting doubtful activity for contributing to national security risks and supporting the Ukrainian government and its people.

However, stricter and increasing regulations could impact the inventions. The increasing pressure for digital currency dealing companies could shift them overseas because most countries have flexible laws. An expert said the cost of digital currency is significant from monetary as well as leadership aspects of the US.

The new executive order to regulate digital currencies could help consumers to protect their businesses from fraud. It is noteworthy that scammers pulled more than $14 billion in 2021 from crypto with criminal activities. Meanwhile, new regulations will give more burdens to crypto companies. They need to hire more employees and pay to register their digital currency business.