Biden expected to issue executive order on cryptocurrencies and CBDCs next week

The White House will reportedly issue an executive order as early as next week directing government agencies to study different aspects of the digital asset space in order to create a comprehensive regulatory framework.

In a Yahoo report on Thursday, Schonberger said an official familiar with the matter within the Biden administration revealed that the executive order could come as early as next week. President Biden’s directive will reportedly require the Attorney General’s Office, the State Department, and the Treasury Department to study the potential launch of a U.S.-issued central bank digital currency.

In addition, the director of the Office of Science and Technology Policy, the newly appointed Alondra Nelson, will assess the infrastructure needed to support the digital dollar in the United States. It is understood that the agency plans to issue a report on distributed ledger technology to the President of the United States within 180 days and update its impact on the environment within 545 days.

According to the executive order, the U.S. Financial Stability Oversight Council will study the financial stability issues brought about by the introduction of cryptocurrencies. The U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Federal Reserve (Fed), the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) will consider taking measures to protect the market and report to the president on ways to reduce the risks of cryptocurrencies.

The Consumer Financial Protection Bureau, the Federal Trade Commission, and the Attorney General’s Office will study the impact of digital assets on market competition. The directors and chairmen of the first two agencies will review privacy issues in this area, respectively.

The executive order is the 81st executive order signed by U.S. President Biden since taking office in January 2021. It will reportedly be used to develop a comprehensive regulatory framework for digital assets in the U.S. The previous administration issued 220 executive orders in four years, and President Obama issued 276 executive orders during his two terms in office.

Cryptocurrency has rarely been mentioned in executive orders in U.S. history. The technology has only existed under the past three administrations.

In March 2018, Donald Trump issued an order prohibiting U.S. residents from participating in transactions in “any digital currency, digital coin, or digital token” issued by the Venezuelan government, referring to the country’s Petro token. The former president also cited “digital currency fraud” in a July 2018 order establishing a task force to address market integrity and consumer fraud.

Another order issued by President Obama in 2015 suggested that authorities would be able to seize digital assets associated with "significant malicious cyber activity." The executive action essentially allowed officials to seize "funds or other assets" without "prior notice," under the National Emergencies Act. In March 2021, President Biden extended the order until April 2022. Since then, the Justice Department and other government agencies have formed a task force to track and seize digital assets associated with illegal transactions.