President Biden is expected to sign an executive order on cryptocurrency this week, directing several federal agencies to investigate and develop digital currency policies and regulations.
According to Reuters, the order is expected to be signed on Wednesday and would be the White House’s first step toward regulating cryptocurrency.
According to The Associated Press, it will outline what federal agencies, including the Treasury, State, and Commerce departments, need to do to develop cryptocurrency regulations and policies.
According to the Associated Press, the order will direct the State Department to ensure that American cryptocurrency laws are consistent with those of the United States’ allies. It will also reportedly charge the Financial Stability Oversight Council, which identifies risks to the country’s financial stability, with conducting an investigation into any financial concerns.
According to Reuters, it will also ask the Justice Department to investigate whether a new law is required to create a new currency, with the Consumer Financial Protection Bureau and other agencies studying the consumer impact.
The order comes amid concerns that Russia could use cryptocurrency to avoid the crippling sanctions imposed by the United States in response to its invasion of Ukraine.
“We will continue to look at how the sanctions work and assess whether or not there are liquid leakages that we can address,” Treasury Secretary Janet Yellen said last week, according to the Associated Press. “I frequently hear cryptocurrency mentioned, and that is a channel to follow.”
In a statement issued on Monday, the Financial Crimes Enforcement Network warned “all financial institutions to be vigilant against potential efforts to evade the expansive sanctions and other U.S.-imposed restrictions” related to Russia’s war on Ukraine.
“While we have not seen widespread evasion of our sanctions through methods such as cryptocurrency, prompt reporting of suspicious activity contributes to our national security and our efforts to support Ukraine and its people,” said acting Director Him Das.
