Biden seen issuing oversight exec next

biden seen issuing oversight exec next

The Order also encourages regulators to ensure sufficient oversight and safeguard against any systemic financial risks posed by digital assets.

  • Protect U.S. and Global Financial Stability and Mitigate Systemic Risk by encouraging the Financial Stability Oversight Council to identify and mitigate economy-wide (i.e., systemic) financial risks posed by digital assets and to develop appropriate policy recommendations to address any regulatory gaps.
  • Mitigate the Illicit Finance and National Security Risks Posed by the Illicit Use of Digital Assets by directing an unprecedented focus of coordinated action across all relevant U.S. Government agencies to mitigate these risks.

  • WASHINGTON — President Biden’s long-awaited executive order on cryptocurrency was met with cautious optimism from much of the finance industry, but with so many important details unresolved, it’s far from certain what the policy outcome of the order will ultimately be.

    The March 9 order marks the first time the White House has formally weighed in on cryptocurrency, and although it is, in essence, a plan for the Treasury Department and other regulatory agencies to make a plan, it’s still a watershed moment.

    It’s also a moment when stakeholders can exert influence to shape what the ultimate trajectory of regulation and policy will be. Digital asset advocates are hopeful that regulation will bolster trust (and encourage the U.S.

    The SEC, The Commodity Futures Trading Commission (CFTC), Federal Reserve, Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) will all be expected to weight market protection measures within their respective jurisdictions. The FTC Chairman and Director of the Consumer Financial Protection Bureau (CFPB) will be looking at potential privacy issues created by digital assets.

    The Commerce Department, Treasury, State Department, and The United States Agency for International Development (USAID) will work to create a framework for interagency international engagement with foreign counterparts in an international forum to enhance the adoption of, and standardize rules for, digital assets.

    Stability Issues Caused By Crypto

    Established by the Dodd-Frank Act to protect the U.S.

    Biden seen issuing oversight exec next am1

    Central Bank Digital Currency (CBDC) by placing urgency on research and development of a potential United States CBDC, should issuance be deemed in the national interest. The Order directs the U.S. Government to assess the technological infrastructure and capacity needs for a potential U.S.

    CBDC in a manner that protects Americans’ interests. The Order also encourages the Federal Reserve to continue its research, development, and assessment efforts for a U.S.
    CBDC, including development of a plan for broader U.S. Government action in support of their work. This effort prioritizes U.S.
    participation in multi-country experimentation, and ensures U.S. leadership internationally to promote CBDC development that is consistent with U.S.

    Biden seen issuing oversight exec next com


    Josh Lipsky, a senior director at the Atlantic Council, who previously advised the International Monetary Fund and worked for the Obama White House. “To be regulated is to be legitimized, so it’s a question of who will be on what side of that, and what those regulations will look like.”

    Crypto advocates were largely happy with the executive order. Instead of solely focusing on risks, the executive order also acknowledged what it sees as cryptocurrency’s potential, quelling some fears.

    The Blockchain Association called the order “further proof that the crypto ecosystem is now a vital and inseparable part of the national economy.” Markets cheered the move, with bitcoin prices jumping about 10% on Wednesday before coming down on Thursday.

    And by and large, the crypto order set off a positive reaction from the banking corners of Washington.

    Biden seen issuing oversight exec next a

    Such safe access is especially important for communities that have long had insufficient access to financial services. The Secretary of the Treasury, working with all relevant agencies, will produce a report on the future of money and payment systems, to include implications for economic growth, financial growth and inclusion, national security, and the extent to which technological innovation may influence that future.

  • Support Technological Advances and Ensure Responsible Development and Use of Digital Assets by directing the U.S.

    Government to take concrete steps to study and support technological advances in the responsible development, design, and implementation of digital asset systems while prioritizing privacy, security, combating illicit exploitation, and reducing negative climate impacts.

  • Explore a U.S.
  • The United States sees #BITCOIN as a threat to its position as the world’s dominant currency. pic.twitter.com/KnfFeQYiLn

    — CryptoApe (@Dodococogoat) February 20, 2022

    CoinTelegraph reports:

    Altogether, the executive order — the 81st President Biden has signed since taking office in January 2021 — would reportedly be used to develop a comprehensive regulatory framework for digital assets in the United States.

    The previous administration issued 220 executive orders over four years, while President Barack Obama released 276 orders during his two terms.

    Cryptocurrencies have been mentioned infrequently in executive orders during the history of the United States. The technology has only existed through the last three administrations.

    In March 2018, Donald Trump issued an order banning U.S.

    Treasury is hopeful Congress will act since its authorities are limited.

    The Attorney General is also being asked to understand what the growth of crypto could have on traditional financial systems and fiat currencies.

    Apparently, the focus of the order is looking on ways to protect consumers and businesses as the order presents the notion that crypto could be a ‘risk’ in some ways.

    The other main focus point is the issue of privacy and any issues that digital assets could create in this area.

    The US government is also reportedly in talks with the governments of other nations to create standardized rules for crypto that could govern how crypto is adopted on an international level.

    Biden expected to issue executive order on crypto and CBDCs next week.

    The FSOC recommended that state and federal regulators review regulations and tools that could be applied to digital assets. The council is also looking at possible privacy issues surrounding the space, as well as distributed ledger technology (the underlying framework for cryptocurrencies) and what powers regulators may have in the space.

    FBI Involved in New Crypto Unit

    Even the FBI is involved, forming a new crypto unit led by a highly experienced computer crimes prosecutor named Eun Young Choi.

    Choi has impressive credentials under her belt, including being the lead on a case against a Russian hacker who helped steal information about more than 80 million JPMorgan & Chase Co. customers and serving as an Assistant United States Attorney for the Southern District of New York.

    Outlines First Whole-of-Government Strategy to Protect Consumers, Financial Stability, National Security, and Address Climate Risks

    Digital assets, including cryptocurrencies, have seen explosive growth in recent years, surpassing a $3 trillion market cap last November and up from $14 billion just five years prior. Surveys suggest that around 16 percent of adult Americans – approximately 40 million people – have invested in, traded, or used cryptocurrencies.
    Over 100 countries are exploring or piloting Central Bank Digital Currencies (CBDCs), a digital form of a country’s sovereign currency.

    The rise in digital assets creates an opportunity to reinforce American leadership in the global financial system and at the technological frontier, but also has substantial implications for consumer protection, financial stability, national security, and climate risk.

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