The White House will issue an executive order next week asking government agencies to review various aspects of the cryptocurrency field in order to develop a complete regulatory system, reports said Friday.
According to an administration official familiar with the topic, the planned directive will commission a study of a central bank digital currency and request a report on the future of money and payment systems from a variety of government institutions.
The executive order was announced following the release of a discussion document by the U.S. Federal Reserve Board that examines the advantages and disadvantages of developing a CBDC for the United States.
The document is open for public comment until May 20, 2022.
Based on reports, U.S. President Joe Biden's decision would direct the Treasury Department, the Office of the Attorney General, and the State Department to conduct an examination of the possibility of imposing a CBDC issued by the U.S.
The Financial Stability Oversight Council will be tasked with investigating potential financial stability implications of crypto assets. The President's Working Group on Financial Markets has previously charged the FSOC with investigating stablecoin systemic issues.
The Federal Reserve, the Securities and Exchange Commission, the Federal Deposit Insurance Corporation, the Commodity Futures Trading Commission, and the Office of the Comptroller of the Currency will recommend market protection measures and report to the president on ways to alleviate crypto risks.
A primary purpose of the order is to coordinate policy responses across all federal agencies and departments in the United States. Another objective is to maintain the government's leadership position in the global economy.
Federal authorities have apparently been investigating digital currencies and potential legislative and regulatory responses for several years, but not in a coordinated or planned manner.
This disjointed effort, coupled with a lack of clarity about the overall direction of American policy, has frustrated participants in the burgeoning bitcoin sector.
Cryptocurrencies have been addressed in executive orders only a few times throughout the U.S.' history. The technology has existed only over the last three presidential administrations.
Donald Trump issued an executive order in March 2018 prohibiting residents of the United States from transacting in "any digital money, digital coin, or digital token" issued by Venezuela's government, alluding to the country's Petro cryptocurrency.
In a July 2018 executive order establishing a task force to address market integrity and consumer fraud, the former president also highlighted "digital currency fraud."
Meanwhile, the U.S. government will consider collaborating with other countries to harmonize crypto regulations.
