President Biden to sign an executive order on digital dollar and federal crypto controls
After the White House crypto regulation project and its Federal Reserve guidelines were both left for 2022, now the wheels are in motion for an executive order on crypto controls to be signed by President Biden this week, according to several insider reports. The rush may have been prompted by a group of U.S. Senators who raised awareness that cryptocurrency transactions need deeper monitoring and control lest they allow Russian entities to circumvent the sanctions imposed on their financial system. While major crypto exchange platforms already announced that they won't issue blanket and indiscriminate Russian account bans, tighter transaction reporting rules may be in play with the executive order, too.
Still, according to the government insiders, President Biden's executive order on crypto won't result in immediate action, but will rather seek to coordinate the federal agencies' response to digital asset regulation and taxation requirements:
The executive order, which has been in the works since last year, will require federal agencies across the government to report later this year what they’re doing regarding digital tokens... The plan is expected to begin carving out roles for agencies across the government, from the State Department to the Commerce Department.
Not only that, but the proverbial official American cryptocurrency may be addressed, too, as the Federal Reserve is already studying its potential impact and is of the opinion that a digital dollar will only strengthen the fiat one. The Federal Reserve's CBDC (central bank digital currency) token would eventually help preserve the dollar's global hegemony as a reserve currency, claims a Fed-commissioned study, and will offset the eventual wider adoption of China's own digital yuan CBDC that was widely publicized during the Winter Olympic Games.