Additional Reporting by Hannah Lang and Katanga Johnson in Washington Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. The timing of the order was first reported by Bloomberg. While a CBDC would be issued by a countrys central bank, the supporting infrastructure could involve both public and private participants. She is also the author of several books, including Seven Keys to Living in Victory, I am My Beloveds and The Cup Bearer. The post Bidens executive order on cryptocurrency heres what it means for you appeared first on In The Know. The chairman of the Federal Reserve is also encouraged to evaluate the extent to which a United States CBDC, based on the potential design options, could enhance or impede the ability of monetary policy to function effectively as a critical macroeconomic stabilization tool. President Bidens executive order calls for the government to examine the risks and benefits of cryptocurrency assets. The industry leader for online information for tax, accounting and finance professionals. All quotes delayed a minimum of 15 minutes. Further, while the United States has been a leader in setting international standards for the regulation and supervision of digital assets for antimoney laundering and countering the financing of terrorism (AML/CFT), poor or nonexistent implementation of those standards in some jurisdictions abroad can present significant illicit financing risks for the United States and global financial systems. Vox is here to help everyone understand the complex issues shaping the world not just the people who can afford to pay for a subscription. Some digital asset trading platforms and service providers have grown rapidly in size and complexity and may not be subject to or in compliance with appropriate regulations or supervision. Some, including the Fed chair, Jerome H. Powell, have argued that a U.S. digital dollar could eliminate the need for privately issued stablecoins digital currencies that promise to maintain their value by relying on stable financial backing like bank reserves and short-term debt. This action plan shall be coordinated through the interagency process described in section 3 of this order. She joined The Times in 2014. Anticipation of a regulatory crackdown, along with rules requiring tougher scrutiny of digital transactions that were tucked into Mr. Bidens $1 trillion infrastructure bill, has prompted the cryptocurrency industry to beef up its lobbying presence in Washington. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Please add some widgets by going to. Representatives of other executive departments and agencies (agencies) and other senior officials may be invited to attend interagency meetings as appropriate, including with due respect for their regulatory independence representatives of the Board of Governors of the Federal Reserve System, the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency and other federal regulatory agencies. By signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy. Continued United States leadership in the global financial system will sustain United States financial power and promote United States economic interests. Objectives. Why is there no universal way to prevent it? Bidens executive order is focused on updating US financial regulations to address cryptocurrency, specifically by instructing federal agencies to study crypto and propose new rules to regulate it. We need clear answers on how to do things, said Louis Lehot, a cryptocurrency expert at the law firm Foley & Lardner. (iv) The United States continues to support the G-20 road map for addressing challenges and frictions with cross-border funds transfers and payments for which work is underway, including work on improvements to existing systems for cross-border funds transfers and payments, the international dimensions of CBDC designs and the potential of well-regulated stablecoin arrangements. Half the world is at risk of dengue. The United States should ensure that safeguards are in place and promote the responsible development of digital assets to protect consumers, investors and businesses; maintain privacy; and shield against arbitrary or unlawful surveillance, which can contribute to human rights abuses. The executive order directs the Treasury Department and financial regulatory agencies to assess the implications of the growing digital asset sector and changes in financial markets for consumers, investors, businesses, and equitable economic growth, according to the outline. CoinDesk journalists are not allowed to purchase stock outright in DCG. Federal agencies will now have months to review and prepare an assessment of these fast-growing digital currencies. The move, according to the Biden administration, is a response to the explosive growth in digital assets, the increasing number of countries exploring central bank digital currencies and a desire to maintain American technological leadership. The report shall include any recommendations on regulatory or legislative actions, as appropriate. The Biden order, likely to come on Wednesday, comes amid heightened concern about the use of cryptocurrencies by Russian elites to circumvent Western sanctions that have The evaluation shall be coordinated through the interagency process described in section 3 of this order. News and analysis for the professional investor. On Wednesday, after news of the executive order, the Feds official Twitter account noted that it had made no decisions on whether to pursue or implement a central bank digital currency and invited the public to continue commenting on issues raised by its report. Leading up to this executive order, the narrative that had been circulating was that the administration was set to crack down on crypto, Lee Reiners, executive director of Duke law schools Global Financial Markets Center, told the Wall Street Journal. This executive order is a definitive signal that we will finally get what we know is coming, says Daniel Strachman, managing partner at A&C Advisors, in Coral Springs, Florida. The report should also address the effect of cryptocurrencies consensus mechanisms on energy usage, including research into potential mitigating measures and alternative mechanisms of consensus and the design tradeoffs those may entail. Cryptocurrencies were higher Wednesday after President Joe Biden announced his highly anticipated executive order on digital assets that took a supportive stance toward the This broad review of digital assets also explores the creation of a U.S. cryptocurrency, a digital dollar.. The report should specifically address: (A) potential uses of blockchain that could support monitoring or mitigating technologies to climate impacts, such as exchanging of liabilities for greenhouse gas emissions, water and other natural or environmental assets; and (B) implications for energy policy, including as it relates to grid management and reliability, energy efficiency incentives and standards, and sources of energy supply. With the total value of all digital currencies near $2 trillion, cryptocurrency is a substantial asset class that has been largely overlooked by U.S. regulators until relatively recently. The White House last year said it was considering a wide-ranging oversight of the cryptocurrency market - including an executive order - to deal with growing threat of ransomware and other cyber crime. The G-7 report highlighted that any CBDC should be grounded in the G-7s long-standing public commitments to transparency, the rule of law and sound economic governance, as well as the promotion of competition and innovation. Senator Patrick J. Toomey, Republican of Pennsylvania and a cryptocurrency champion, directed unusual praise toward the White House for highlighting the potential benefits of cryptocurrencies, including stablecoins. What we do know is that Biden seems intent on taking a middle-of-the-road approach, one that acknowledges that crypto is no longer a niche technology but rather a growing part of the average Americans finances. Those rules should help create trust and acceptance in these markets, helping them to further develop. Sec. A desert fungus that infects humans is spreading. (b) The term central bank digital currency or CBDC refers to a form of digital money or monetary value, denominated in the national unit of account, that is a direct liability of the central bank. Regardless of the label used, a digital asset may be, among other things, a security, a commodity, a derivative or other financial product. In January, the Fed released a long-awaited report on central bank digital currencies, which it said was intended to generate debate. Biden Takes Step Toward Regulating Cryptocurrencies Jail officials let Jeffrey Epstein make an unmonitored call on the night he died by suicide. long-awaited executive order about cryptocurrency, spent months warning about impending oversight. President Joe Bidens administration is preparing to regulate cryptocurrency. (d) We must reinforce United States leadership in the global financial system and in technological and economic competitiveness, including through the responsible development of payment innovations and digital assets. The Biden administration is weighing an executive order on cryptocurrencies as part of an effort to set up a government-wide approach to the It directs financial regulators to continue with work that began in earnest last year, including studying and reporting on the creation of a digital dollar. Still, this effort signals that at the very least, Biden thinks crypto is a serious part of the US economy and that it might even have some potential. The cryptocurrency market has exploded in popularity and prominence over the past several years, with digital tokens such as bitcoin and ethereum eclipsing trillions of dollars in value. President Bidens executive order helps kick off the U.S. governments serious analysis of cryptocurrency, an assessment that should ultimately lead to laws and regulations that establish a set of ground rules for the industry. The results could help shape the contours of a rapidly innovating industry that has swiftly moved into the mainstream but that critics say enables illicit activity, including money laundering, and creates outsize financial risks for consumers and the financial system. by Sylvan Lane - 03/09/22 6:00 AM ET. Experts say that regulation and a longer-term strategy help validate the cryptocurrency sector, at least its good actors and not those interested in engaging in illegal activities. It additionally directs the Financial Stability Oversight Council to study whether cryptocurrencies pose risks to the financial system great enough to potentially trigger a crisis. Can President Bidens executive order help American women Sec. FTX Seeks $700 Million From Firm That Gave Bankman-Fried Celebrity Access. (b) In furtherance of the policy stated in section 8 (a) of this order: (i) Within 120 days of the date of this order, the Secretary of the Treasury, in consultation with the Secretary of State, the Secretary of Commerce, the administrator of the United States Agency for International Development, and the heads of other relevant agencies, shall establish a framework for interagency international engagement with foreign counterparts and in international fora to, as appropriate, adapt, update and enhance adoption of global principles and standards for how digital assets are used and transacted, and to promote development of digital asset and CBDC technologies consistent with our values and legal requirements. Be a smarter, safer investor in eight weeks. Suspect arrested after couple celebrating 50th wedding anniversary are found dead in Massachusetts home, Midwest air quality plummets as Canada wildfire smoke moves in, Supreme Court rejects controversial election law theory, Afternoon sunshine on tap in SoCal Wednesday, The Actual Brands Behind Costco's Kirkland Label, Wake-Up Weather: Afternoon showers, t-storms, Train derailment raises questions about Montana railway safety, Valley New School has a new home for next school year, but it's a temporary solution. Continued United States leadership in the global financial system will sustain United States financial power and promote United States economic interests.. As envisioned, such a cryptocurrency is a virtual version of the U.S. dollar. If you also believe that everyone deserves access to trusted high-quality information, will you make a gift to Vox today? (iii) Within 180 days of the date of this order, the attorney general, in consultation with the Secretary of the Treasury and the Secretary of Homeland Security, shall submit to the president a report on the role of law enforcement agencies in detecting, investigating and prosecuting criminal activity related to digital assets. But he warned that regulatory overreach could stymie growth in an area where innovation has been led by consumers. And we cant do that if we have a paywall. We must reinforce United States leadership in the global financial system and in technological and economic competitiveness, including through the responsible development of payment innovations and digital assets, said Biden in the order. Without oversight, the explosive growth in cryptocurrency use with those risks to Americans and to the stability of our businesses, our financial system and our national security, said one senior administration official on a Tuesday press call with reporters. The action plan shall address the role of law enforcement and measures to increase financial services providers compliance with AML/CFT obligations related to digital asset activities. Whats going on with Vladimir Putin after the mutiny? (c) The chairman of the Board of Governors of the Federal Reserve System (chairman of the Federal Reserve) is encouraged to continue to research and report on the extent to which CBDCs could improve the efficiency and reduce the costs of existing and future payments systems, to continue to assess the optimal form of a United States CBDC and to develop a strategic plan for Federal Reserve and broader United States government action, as appropriate, that evaluates the necessary steps and requirements for the potential implementation and launch of a United States CBDC. If you decide to purchase products through the links below, we may receive a commission. Gensler has told lawmakers that he wanted crypto exchanges to register with the SEC, similar to traditional securities exchanges. Crypto. But the White House seems to think crypto could do some good, too. The United States must continue to work with international partners on standards for the development and appropriate interoperability of digital payment architectures and CBDCs to reduce payment inefficiencies and ensure that any new funds transfer and payment systems are consistent with United States values and legal requirements. Policy and Actions Related to Fostering International Cooperation and United States Competitiveness. My administration will support the ongoing international work and, where appropriate, push for additional work to drive development and implementation of holistic standards, cooperation and coordination and information sharing. CoinDesk journalists are not allowed to purchase stock outright in DCG. The directive calls on the government to assess the potential to develop a central bank digital currency essentially a digital dollar that would be used to modernize payment systems. (iii) A United States CBDC may have the potential to support efficient and low-cost transactions, particularly for crossborder funds transfers and payments and to foster greater access to the financial system, with fewer of the risks posed by private sector-administered digital assets. WASHINGTON President Joe Biden on Friday will sign an executive order designed to protect and expand access to contraception after a Supreme Court ruling And it isnt going away anytime soon. The first cryptocurrency, Bitcoin, was introduced in 2009. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. The principal policy objectives of the United States with respect to digital assets are as follows: (a) We must protect consumers, investors and businesses in the United States. This framework shall be coordinated through the interagency process described in section 3 of this order. Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Sec. How Bidens executive order on cryptocurrency may impact the fate of digital currency and assets Aaron Klein Thursday, March 17, 2022 TechTank The Superbowl is President Biden on Wednesday signed an executive order commissioning a series of reviews and reports on how the U.S. should regulate and develop the cryptocurrency industry. @el72champs, A version of this article appears in print on, Biden Takes Step Toward Regulating Cryptocurrencies, https://www.nytimes.com/2022/03/09/us/politics/crypto-regulation-biden.html. Learn more about Consensus 2024, CoinDesks longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Federal agencies have already been studying or providing regulatory guidance around the digital asset sector for years. (v) My administration will elevate the importance of these topics and expand engagement with our critical international partners, including through fora such as the G-7, G-20, FATF and FSB. Major cryptocurrencies, including Bitcoin and Ethereum, traded significantly higher on the news. Conversely, critics who claim the crypto industry is rife with fraud, scams, and criminal activity are arguing for tighter regulations of cryptocurrency, not wider acceptance. This Bidens executive order on cryptocurrency heres what it means for you, US Supreme Court backs man who sent female musician flood of unwanted messages. Actions to Limit Illicit Finance and Associated National Security Risks. Most news outlets make their money through advertising or subscriptions. On March 9, 2022 President Biden signed a long-awaited executive order (EO) embarking on a whole-of-government, comprehensive approach to the regulation of including the Fed chair, Jerome H. Powell. This framework shall include specific and prioritized lines of effort and coordinated messaging; interagency engagement and activities with foreign partners, such as foreign assistance and capacity-building efforts and coordination of global compliance; and wholeofgovernment efforts to promote international principles, standards and best practices. (d) Within 120 days following completion of all of the following reports the National Money Laundering Risk Assessment; the National Terrorist Financing Risk Assessment; the National Proliferation Financing Risk Assessment; and the updated National Strategy for Combating Terrorist and Other Illicit Financing the Secretary of the Treasury shall notify the relevant agencies through the interagency process described in section 3 of this order on any pending, proposed or prospective rulemakings to address digital asset illicit finance risks. 2. (a) Digital assets have facilitated sophisticated cybercrimerelated financial networks and activity, including through ransomware activity. The United States has an interest in responsible financial innovation, expanding access to safe and affordable financial services and reducing the cost of domestic and cross-border funds transfers and payments, including through the continued modernization of public payment systems. President Joe Bidens long-awaited executive order about cryptocurrency is finally here. Biden to order studies on regulating, issuing cryptocurrency U.S. Treasury Secretary Janet Yellen last year warned about an "explosion of risk" from digital markets, including the misuse of cryptocurrencies, but said new financial technologies could also help fight crime and reduce inequality. See here for a complete list of exchanges and delays. As the Secretary of the Treasury and the FSOC deem appropriate, the report should consider the particular features of various types of digital assets and include recommendations that address the identified financial stability risks posed by these digital assets, including any proposals for additional or adjusted regulation and supervision as well as for new legislation. As part of this effort, Biden has ordered federal agencies to dig into many of the problems that crypto created as it became more mainstream, including its role in money laundering and terrorist groups. Joe Biden orders study of cryptocurrency risks and a digital dollar By Betsy Klein, CNN Business Updated 11:11 AM EST, Wed March 9, 2022 Link Copied!
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