A few days after urging various crypto exchange platforms to stop offering services to Russian citizens, the United States government will state its stand regarding the adoption and usage of cryptos.
According to Bloomberg, officials aware of the development have claimed that President of the United States Joe Biden will “issue an executive decree this week that will define the administration’s policy for digital currencies.” This will end a two-week standoff since the United States began imposing sanctions against Russia.
Additionally, the Executive Order is intended to completely address the economic, regulatory, and national security concerns presented by virtual currencies. It will also compel regulatory officials to present their reports by the end of the Q2 of 2022.
Government Agencies To Submit Report First
The FSOC (Financial Stability Oversight Council), which has already been analyzing the financial threats presented by digital currencies, and the United States Department of Treasury are among those scheduled to submit reports.
According to reports, the order would also assign particular tasks to various government agencies and departments in crafting a comprehensive digital currency strategy. This strategy must guarantee that the United States maintains its edge over its competitors amidst the increasing rise of digital currencies internationally.
Currently, the White House has not responded to the matter of introducing an electronic currency. However, this decree may herald the conclusion of a lengthy dispute about CBDCs that the FED threw to the Senate at the beginning of the year since the POTUS may expect the entire matter to be resolved by May 2022.
As the risks of utilizing virtual currencies to conduct criminal activities become more apparent, Biden’s government is under pressure to establish regulations for digital currencies.
While Coinbase has already pushed the limit by barring some Russian organizations that are not on the restriction list, other crypto corporations continue to underestimate the potential of crypto to cause actual economic hazards.
Zhao Says Valuation Of Cryptocurrency Is Too Small
Binance founder, Changpeng Zhao, has stated that cryptocurrency’s market cap is still much below the global danger threshold. Some people in Washington do not agree with this statement.
Days ago, a team of US legislators led by Sen. Elizabeth Warren and Sherrod Brown, chairman of the Senate, addressed a letter to Janet Yellen, the Treasury Secretary voicing concerns about Russia’s use of cryptos to avoid sanctions.
Aside from the United States, the European Union and Singapore have pledged to adopt steps, some of which are anticipated to go above the scope of existing regulation, to prohibit Russia from exploiting cryptocurrency to circumvent sanctions.
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