The US President, Joe Biden has signed an Executive Order to watch over cryptocurrency that directs the Federal Reserve to examine the crypto space and find out whether the Central Bank should take a dive into crypto space and develop their own Central Bank Digital Currency (CBDC).
The executive order commands the Treasury Department and other federal agencies to determine and study the impact of cryptocurrency on financial stability and national security.
As per the senior administration official, the Whitehouse observed the growth of cryptocurrency, hence the government wants to understand risks and benefits associated with digital assets.
It also encouraged the Federal Reserve to continue its ongoing research into the possibility of a digital dollar and to “develop a strategic plan” for how a U.S. CBDC could be implemented.
The order asked regulators to focus on how technological innovation may impact the larger goal of introducing crypto assets “with an eye toward those most vulnerable.”
However, the news of the Executive Order went viral on the internet yesterday.
The move from the Whitehouse has come when many lawmakers and officials are raising concern that Russia can use cryptocurrency for global sanctions evasion, which is put on it from many countries for unwanted aggression in Ukraine.
U.S lawmakers including Senator Elizabeth Warren, Mark Warner, and Jack Reed asked the Treasury Department to explain how it intends to inhibit cryptocurrency use for sanctions evasion.
The Executive Order calls for measures to protect consumers, investors, and businesses as well as maintain global financial stability and mitigate systematic risk associated with cryptocurrency.
SEC Chair Gensler also appreciated Joe Biden’s move on cryptocurrency and said that he is looking forward to collaborating with colleagues across the government to help them create policy over cryptocurrency. In the past few months, Gensler has torn down many crypto rollouts and initiatives, which has disappointed many crypto entrepreneurs.
Gensler emphasized on the news anyway, deciding to give his support for Biden’s regulatory efforts on Twitter. However, the crypto community didn’t like Gensler’s tweet very much and asked many bitter questions.