Joining the ranks of nations around the world who are seeing that cryptocurrencies are gaining popularity, the United States is sorting its approach to the burgeoning sector.
Reports state that the Joe Biden administration will issue an executive order to direct all government agencies to research cryptocurrency and central bank digital currency (CBDC) as well as suggest regulating crypto assets.
The order will also request that agencies formulate measures to protect consumers, businesses, and investors, in addition to assessing the environmental impact and financial risks of the crypto industry.
Agencies included in the order are the Departments of the Treasury, State, Justice, and Homeland Security. These agencies are asked to produce reports on the future of money and payment systems.
“The Financial Stability Oversight Council (FSOC) to study what impact cryptocurrency will have on financial stability, particularly after the matter was highlighted by the International Monetary Fund (IMF),” according to the article.
Market competition will be assessed by the Attorney General, the Federal Trade Commission and the Consumer Financial Protection Bureau.
Those responsible for outlining market protection measures include the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency.
Protection measures will be outlined in a report that will be shared with the president by the Treasury Department, after key stakeholders are consulted.
“The executive order is also expected to delve into benefits and shortcomings related to stable coins, privacy and distribution ledger technology,” according to the article.
This executive order is surfacing just as there is mounting anxiety from regulatory authorities about cryptocurrency’s “potential to remove intermediaries–such as banks and other financial institutions– for business transactions.” Based on agencies’ reports, the U.S. government is expected to coordinate with other countries to standardise crypto rules across the globe.