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- Within 180 days, the White House Office of Science and Technology Policy will submit a report to the president on digital distributed ledger technology, followed by a 545 day update on DLT and its environmental impact. The government will also consider collaborating with other countries to standardise crypto regulations.
- The Financial Stability Oversight Council (FSOC), which was established during the 2008 financial crisis to monitor systemic risks, will be requested to investigate financial stability vulnerabilities arising from digital assets. The FSOC has already been assigned by the President’s Working Group on Financial Markets to investigate the systemic risks of stablecoins
- Treasury will work with the Securities and Exchange Commission, the Commodities Futures Trading Commission, and federal banking authorities to create a report for the president on how to defend against cryptocurrency threats.
Next week, President Biden is anticipated to sign an executive order directing agencies across the government to research cryptocurrencies and a central bank digital currency (CBDC), as well as develop a government-wide strategy to manage digital assets.
Official Dismissed The Claim As Inaccurate
According to a source close to the administration, the upcoming directive would commission a CBDC study and urge a number of agencies including the Treasury, State, Justice, and Homeland Security to provide a report on the future of money and payment systems. Meanwhile, the Director of the White House Office of Science and Technology Policy will do a technical assessment of what could be required to support a CBDC system. The action comes after Bloomberg News reported on Wednesday that the White House and Treasury are at odds over cryptocurrency regulation, but a Treasury official dismissed the claim as inaccurate. The administration is attempting to regulate the sector in a variety of ways, including the FBI launching a new crypto unit supervised by a seasoned computer crimes prosecutor.
The Financial Stability Oversight Council (FSOC), which was established during the 2008 financial crisis to monitor systemic risks, will be requested to investigate financial stability vulnerabilities arising from digital assets. The FSOC has already been assigned by the President’s Working Group on Financial Markets to investigate the systemic risks of stablecoins. Treasury Undersecretary Nellie Liang told the Senate this week that the council is considering the potential hazards that stablecoins pose and is looking into what authorities regulators have. Because Treasury’s powers are limited, it is hoping that Congress will intervene.
Meanwhile, the Attorney General, the Federal Trade Commission, and the Consumer Financial Protection Bureau will be asked to assess the impact of the rise in digital assets on market competitiveness. Market protection measures are expected to be considered by the SEC, CFTC, Federal Reserve, FDIC, and OCC in their respective jurisdictions. The order will also consider consumer, investor, and corporate protections. Treasury will work with the Securities and Exchange Commission, the Commodities Futures Trading Commission, and federal banking authorities to create a report for the president on how to defend against cryptocurrency threats.
The Chairman of the Federal Trade Commission and the Director of the Consumer Financial Protection Bureau will be requested to look into privacy issues that could arise as a result of digital assets.
545 Day Update On DLT And Its Environmental Impact
Within 180 days, the White House Office of Science and Technology Policy will submit a report to the president on digital distributed ledger technology, followed by a 545 day update on DLT and its environmental impact. The government will also consider collaborating with other countries to standardise crypto regulations. The State Department, Treasury Department, Commerce Department, and USAID will collaborate to develop a framework for interagency international interaction with foreign counterparts in an international forum to promote digital asset adoption and standardise standards.
The executive order allows the White House, Treasury, and other government agencies to weigh in on a digital dollar, a framework that the Federal Reserve announced in January. Liang told Yahoo Finance Treasury this week that he certainly supports[s] an urgent examination of CBDC, but stopped short of backing one outright.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
