- The Biden administration is said to be considering an executive order for various agencies to study crypto and issue recommendations.
- The U.S is looking into regulating the crypto industry which has in recent years recorded unprecedented growth prompting the government to look into it.
According to a Bloomberg report citing unnamed sources, U.S president Joe Biden is considering an executive order on crypto oversight. This order would see several federal agencies study crypto and issue recommendations over relevant areas of crypto touching on financial regulation, economic innovation and national security. This comes amidst calls from politicians and crypto leaders for clearer crypto regulations to bolster the growth of the industry.
Several developments have triggered a nationwide discussion about the regulation of cryptocurrencies. One of the pivotal points was the SEC suing Ripple and its executives for issuing XRPs which the watchdog dims as securities. This case is still ongoing with most analysts not expecting its ruling or a settlement before the end of the year, or early next year. On top of this, the crypto market has rocketed surpassing $2 trillion and Bitcoin reaching an all-time high of $65,000 earlier in the year. At the height of this price rise, adoption of the digital assets has forced world governments to take a hard look at the industry to ensure investors are protected.
Biden admin taking keen interest in crypto
The Biden administration has in particular taken a focus on regulation. Since taking office, it has made some key developments through different agencies such as the U.S Treasury announcing new guidelines to combat cryptocurrency-related ransomware attacks. The administration through the US Justice Department has also established a National Cryptocurrency Enforcement Team (NCET) to investigate crypto criminal activity.
Through the Federal Reserve, the U.S. central bank has been studying stablecoins which according to regulators poses a threat to both the crypto industry and the larger economy.
One of the major problems with regulating is that there is little knowledge of what is still a developing technology. Should the administration take the approach of studying and taking recommendations, the government will be better placed to come up with regulations that bolster development and adoption.
Details about the consideration remain scarce but investors will be closely watching with the U.S a global financial leader whose decisions affect the global market. So far, the market has not reacted to the recent update. At the time of press, Bitcoin has slipped under $55,000 after a less than 2 percent dip.