Crypto Industry Awaits Biden’s Crypto Executive Order Announced

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President Biden expected to release comprehensive cryptocurrency policy in coming weeks, report says News comes as federal agencies take a closer look at digital assets

Following a renewed federal interest in digital assets, the Biden administration is reportedly preparing to issue an executive order on cryptocurrency policy.

The Bloomberg report comes as federal organizations have tried to play a bigger role in overseeing digital assets, raising questions about the jurisdiction of the emerging asset class.

“Biden could use the power of the pen to appoint an individual crypto or digital assets czar, with oversight power over a group of multiple partner agencies like the Commodity Futures Trading Commission, Financial Crimes Enforcement Network, Office of the Comptroller of Currency and the Securities and Exchange Commission,” said Michael Fasanello, director of training and regulatory affairs at the Blockchain Intelligence Group. “All of the aforementioned agencies have some interest in regulating the digital asset space.”

While Biden has been relatively quiet on crypto, his administration’s position has become clearer. Treasury appointee Brian Nelson said cryptocurrencies should be scrutinized more harshly under anti-money laundering law.

In May, the Treasury Department moved to require crypto transfers of $10,000 or more to be reported to the Internal Revenue Service. In a November report from the President’s Task Force on Financial Markets, Treasury Secretary Janet Yellen claimed that stablecoins could pose a threat to financial stability.

And the Federal Reserve recently released its 40-page report analyzing the possibility of a central bank digital currency.

“The federal government is exercising much broader and more extensive oversight over our financial policy and regulation, and I hope the Biden administration’s executive order will provide clarity for this revolutionary and evolving industry,” said Margaret Croke, Illinois State Representative. (D-12th District). “It will then be up to us at the state level to align with federal policy, and I look forward to seeing what the Biden administration announces.”

The executive order, expected later this year, will examine the economic and security challenges of crypto, according to Bloomberg. The administration is also calling on other government agencies to intervene on how digital assets may impact their work.

“While the details of this impending executive action remain to be seen, what is certain is that private sector companies dealing with digital assets have had years to prepare for this moment,” Fasanello said. “The industry has had ample time to take stock of the example set by the traditional financial system and create a skeletal model of what other specified regulatory obligations will look like.”

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Casey Wagner

blockages

Senior Reporter

Casey Wagner is a business journalist covering regulation, legislation, digital asset investment firms, market structure, central banks and governments, prime brokerage, derivatives, cash management, regulatory arbitrage, stablecoins and CBDCs. Prior to joining Blockworks, she reported on markets at Bloomberg News. She graduated from the University of Virginia with a degree in media studies.

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