The primary points of US President Joe Biden’s intended executive order on crypto legislation were disclosed by the White House on Wednesday.
The decree will recognize and control digital assets in the country, as well as encourage the formation of a digital currency issued by the central bank (CBDC).
The order would focus on protecting investors, limiting unlawful activity through crypto, and spurring the development of digital payment systems according to the announcement from the White House. Later in the day, Biden is expected to sign the order.
The decree is the first time the US government has taken action on crypto legislation at the federal level. While the declaration did not specify any specific restrictions for cryptocurrencies, it did direct federal authorities to collaborate in the space’s development.
In the wake of the Russia-Ukraine crisis, regulators are increasingly focused on cryptocurrencies. Not only was this the first time a country requested crypto donations, but it also aroused concerns that sanctioned entities could use crypto to circumvent regulations.
This is a key issue of Biden’s proposed order, which aims to create an international framework to decrease the risk of under-the-table digital asset transactions.
The decree will also support the Federal Reserve to create a CBDC and strive to promote co-development with other countries. With the launch of the digital yuan at the Winter Olympics, China was one of the first countries to introduce a digital currency this year.
The Treasury Department report on the “future of money.”
According to the directive, Janet Yellen, the Secretary of the Treasury, will write a report on the “future of money” and payment systems, especially in light of the growing demand for digital currencies.
The information given by the White House matched the details from Yellen’s remarks, which had leaked on Tuesday. The Treasury, according to Yellen, will work with a number of government agencies as well as consumer and investor advocacy groups to produce the report.
Given recent condemnation of crypto by Senators including Elizabeth Warren, the order allays fears that the government will take a hard line against it. On Tuesday, markets reacted positively to the disclosed information, with Bitcoin rising more than 6% past $42,000.