Amidst the pressures on crypto companies to discontinue their services in Russia, the President of the United States, Joe Biden, will soon sign an executive order that’ll pave the way for crypto regulations, according to a Bloomberg report.
The order, which is expected to come midweek, will give the Treasury, Justice Department, and other federal agencies the go-ahead to research cryptocurrencies.Â
Crypto regulations in the United States to become clearer
They’ll examine ways to regulate it and determine whether a digital dollar is a good idea. The executive order was first announced last year when the White House said it was considering an oversight of the crypto market.
The order will ask the Justice Department to see if a new law is necessary to issue a new currency. Other agencies such as Consumer Financial Protection Commission and Federal Trade Commission will study how it could affect consumers.Â
Other agencies will also study the impact of crypto on competitiveness, the infrastructure needed, the environmental impact of Bitcoin mining, etc.
The order will set a 180-day deadline within which the federal agencies will provide reports on the future of money and crypto’s role in that future. According to the source, the President could sign the order as soon as Wednesday.Â
With the executive order, the regulatory and policy landscape for crypto in the US could witness a significant change. It could also mean that the digital dollar is becoming more likely.
Crypto exchanges and Russia’s sanction
The timing of the executive order is quite coincidental as it comes when crypto companies face criticisms for refusing to ban Russia from their services.Â
Due to Russia’s military action in Ukraine, the country is facing economic sanctions that have led many top financial institutions to stop their services. The Financial Crimes Enforcement Network (FinCEN) warned financial institutions to beware of attempts by Russian entities to evade the sanctions.
But crypto exchanges have refused to stop their operations, stating that this would affect the average citizens more than the oligarchs. However, Coinbase and Binance recently revealed that they sanctioned some crypto wallets that could be connected to oligarchs and entities affected by the sanctions.
However, the possibility of that is questionable given the massive impact of the sanctions on the Russian economy. Despite its size, the crypto market is still limited, and the Vladimir Putin-led country will find it difficult to depend solely on it to evade sanctions.
On the other hand, Ukraine has enjoyed immense support from the crypto community with donations to the country topping $70 million and a host of other noble and humanitarian gestures from across the world.
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