President Joe Biden is expected to sign an executive order on cryptocurrency this week that will mark the first step toward regulating how digital currency is traded
WASHINGTON - President Joe Biden is expected to sign an executive order on cryptocurrency this week that will be the first step toward regulating the trading of the digital currency.
The move comes as administration officials have raised concerns in recent weeks about the use of cryptocurrencies to avoid the effects of crushing sanctions in response to Russia's invasion of Ukraine. Sanctions have sent the ruble to historic lows and shut down the country's stock market.
Two people familiar with the process said the executive order on cryptocurrencies is expected to be issued this week and was in the works long before the war. The two men spoke on condition of anonymity to preview the order.
The order is expected to describe what government agencies, including the Treasury Department, need to do to develop policies and regulations on digital currencies. The State Department's request to ensure that US cryptocurrency laws are aligned with those of US allies is expected to include and the Financial Stability Monitoring Council – which monitors the stability of the US financial system – to study illegal financial concerns. will ask to do.
Additionally, the order will explore the possibility of a new central bank digital currency. The Federal Reserve released a paper on the subject in January that Explores the risks and benefits of supported digital currencies.
Implicit in the order would be that the cryptocurrency would remain a part of the US economy for years to come. The White House's plans to move forward with the executive order were first reported by Bloomberg News.
Although US officials have underestimated the importance of cryptocurrencies to Russia's ability to evade sanctions, it remains a concern.
“We will continue to see how the restrictions work and evaluate whether there are liquid leaks and the possibility we have to address them. I often hear mention of cryptocurrency and this is the channel to be seen,” Treasury Secretary Janet Yellen said last week.
A senior administration official who spoke on condition of anonymity said the president's national security team is already looking into the use and construction of front-facing companies and alternative financial institutions to employ to get around Moscow sanctions. can try.
Crypto is one of many places the Biden administration wants to shore up as it tries to ensure that sanctions on Russia have the maximum impact. The official said past experiences of sanctions evasion in Iran and Venezuela are informing the administration's efforts. Additional export controls and new sanctions targets are also expected to be revealed in the coming days and weeks to counter Russian sanctions evasion efforts, the official said.
On Monday, the Treasury's Financial Crimes Enforcement Network issued an alert advising financial institutions to "be vigilant" against any attempt to evade sanctions in connection with Russia's war in Ukraine.
Acting Director Him Das said in a statement, "While we have not seen widespread theft of our sanctions using methods such as cryptocurrency, prompt reporting of suspicious activity contributes to our national security and our efforts to support Ukraine and its people." gives."