Cryptocurrency may get its first regulatory breakthrough in the United States later this week. President Joe Biden is expected to sign an executive order linked to the trade of cryptocurrency, media reports suggest.
The new executive order may come as US officials have raised concerns over Russia’s possible use of cryptocurrency to minimize the impact of multi-party sanctions following the Ukraine invasion. Russia’s currency Ruble dipped to historic lows as the economy is being isolated.
What is the cryptocurrency order expected to do?
According to reports from Associated Press, the executive order will set the framework for various government departments, including Treasury, on the process of forming policies for digital currencies.
It is expected to include a request for the State Department to ensure that American cryptocurrency laws are aligned with those of United States allies and will ask the Financial Stability Oversight Council — which monitors the stability of the American financial system — to study illicit finance concerns.
The possibility of a new central bank digital currency might also be explored in the upcoming executive order from the White House, according to reports from Associated Press.
Joe Biden’s national security team has been scanning for possible alternative financial institutions and front companies that may be put in place by the Kremlin to evade the impact of sanctions, Associated Press reported citing unnamed sources from the administration.
On Monday, Treasury’s Financial Crimes Enforcement Network issued an alert advising financial institutions to be “vigilant” against any efforts to evade sanctions in connection with Russia’s war in Ukraine.
Crypto is one of several spaces that the Biden administration is looking to shore up as it tries to make certain that sanctions on Russia have maximum impact.