US Moves To Regulate Cryptocurrencies
US moves to regulate cryptocurrencies, amid the growing popularity of cryptocurrencies, governments around the world are coming up with strategies to manage this new industry.
The US government is also set up to regulate the fast-growing sector.
Reports say the Joe Biden administration will issue an executive order directing all government agencies to study cryptocurrencies and central bank digital currencies (CBDCs) and recommend asset regulation. electronic money.
It will also require agencies to develop measures to protect consumers, businesses and investors, in addition to assessing the environmental impact and financial risks of the crypto industry.
The order will direct agencies, including the Departments of the Treasury, State, Justice and Homeland Security, to issue reports on the future of money and the payment system.
First reported by Yahoo Finance, the executive order will require:
Financial Stability Oversight Council (FSOC) to study the impact of cryptocurrencies on financial stability, especially after the issue was raised by the International Monetary Fund (IMF).
The Attorney General, the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau will analyze the impact on market competition.
The Securities and Exchange Commission, the Commodity Futures Trading Commission, the Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency will review market protections. school.
The Treasury Department will submit a report to the president on safeguards after consulting with stakeholders.
The executive order is also expected to delve into the benefits and shortcomings related to stable coins, privacy, and distributed ledger technology.
The Joe Biden administration’s move comes at a time when regulators are increasingly concerned about the potential of cryptocurrencies to eliminate intermediaries – such as banks and other financial institutions – for business transactions.
Based on reports from the agencies, the US government is likely to work with other countries to standardize cryptocurrency rules globally. Currently, several countries are developing their own rules to regulate this sector.
