President Biden is reportedly set to sign an executive order on cryptocurrency this week that will direct several federal agencies to investigate and develop policies and regulations on digital currencies.
According to Reuters, the order is likely to be signed on Wednesday, and will be the White House's first step toward regulating cryptocurrencies.
According to the Associated Press, it will reportedly outline what federal agencies, including the Treasury, state and commerce departments, need to do to develop regulations and policies on the cryptocurrency market.
The AP reported that the order would ask the State Department to ensure that U.S. cryptocurrency laws align with those of U.S. allies. It will also reportedly task the Financial Stability Oversight Council, which identifies risks to the country's financial stability, to examine any financial concerns.
According to Reuters, along with the Consumer Financial Protection Bureau and other agencies studying consumer impact, it will request the Justice Department to see if a new law is needed to create a new currency.
The order comes amid concerns over whether Russia could use cryptocurrencies to circumvent US sanctions issued in response to its invasion of Ukraine.
According to the AP, Treasury Secretary Janet Yellen said last week, "We will continue to see how the sanctions work and evaluate whether there are liquid leaks and we have the possibility to address them." “I mention cryptocurrency quite often and it is the channel to be seen.”
On Monday, the Financial Crimes Enforcement Network said in a statement that "all financial institutions are subject to comprehensive sanctions and other U.S. sanctions in relation to Russia's war on Ukraine."
Acting Director Him Das said, “While we have not seen widespread evasion 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. "