WASHINGTON — President Joe Biden is expected to assert some federal control over cryptocurrencies, injecting federal oversight into a monetary Wild West.
According to reports from Politico and the Associated Press, Biden will issue an executive order this week instructing federal agencies to address bitcoin and other digital assets.
The US government does not have a unified approach to cryptocurrencies.
Those potential problems include challenges to national security, threats to dollar dominance, and additional difficulty preventing criminal activity.
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 the cryptocurrency is expected to be issued this week, and that it was in the works long before the war. The two men spoke on condition of anonymity to preview the order.
In January, the Federal Reserve announced that it would seek public comment regarding the issuance of a fully digital US dollar. It can serve as a more stable alternative to other digital forms of money.
The bipartisan infrastructure law signed into law last year created new tax reporting requirements for crypto investors.
And last month, the Justice Department announced its first director of the National Cryptocurrency Enforcement Team, Yoon Young Choi, who will be charged with criminal charges related to the use of cryptocurrency and digital assets.
According to a 2021 study from the University of Chicago, one in 10 Americans have reported buying or trading cryptocurrency in the past 12 months.