Social media is heating up today with chatter around digital assets. However, this chatter doesn’t necessarily involve specific tokens or coins. Rather, investors appear to be concerned with the potential for President Joe Biden to further regulate cryptocurrencies in the coming days. So what is the Biden crypto news you should know?
According to recent reports, the White House is looking at putting in place crypto regulations with national security in mind. Investors also now know that this executive order from Biden could come next week.
Why does this matter? Well, for investors, the threat of crypto regulation has been a huge market driver in 2022. Various countries have stepped in to regulate, or ban, crypto mining. The U.S. Securities and Exchange Commission has picked up enforcement activities, recently fining BlockFi $100 million for its unregistered lending product.
So far, the U.S. has been less aggressive than many other nations in policing the crypto sector. Whether or not this changes with Biden’s crypto executive order is a big topic of debate.
Let’s dive into a few things investors may want to know about the potential crypto regulation.
Will the Biden Administration Heavily Regulate Crypto?
- Investors expect the executive order to come in the next few days.
- This order will reportedly focus on two things, with the first being the development of a “government-wide strategy to regulate digital assets.”
- Secondly, the Biden administration allegedly wants to dive deeper into the idea of a central bank digital currency (CBDC).
- It should be noted that the Federal Reserve is reportedly already looking into developing a CBDC.
- That said, the Biden administration views the crypto sector as one which could impact the future of monetary payment systems.
- Accordingly, current efforts by this administration include the forming of an FBI crypto unit with cyber crime specialists.
- Among the issues the administration is considering are systemic risks tied to stablecoins and money laundering.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.