I have HUGE executive order news today! Let’s talk about Biden, Crypto, and what’s going on in Ukraine… and how these hot topics are all related to one another. You’re not going to want to miss this one, guys!
Biden is going to issue an executive order on cryptocurrency. What does this mean, exactly? This will be one of the first steps toward regulating just how we trade digital currency.
Officials are concerned about Russia’s cryptocurrency use, in order to avoid the impact of debilitating sanctions the U.S. has put on the country. If you’re not aware, these sanctions are in response to its invasion of Ukraine.
The sanctions have sent the Russian ruble to all-new lows, along with totally closing the country’s stock market. So if these sanctions weren’t enough, now Biden is coming in hot with a crypto executive order. Needless to say, it’s been a pretty wild ride.
The executive order in question will describe what government agencies like the Treasury Department will do to regulate digital currencies. This includes a potential request for the State Department to ensure that crypto laws are the same as American allies, under the Financial Stability Oversight Council.
There’s also the possibility we’ll introduce a new central bank digital currency. If you don’t already know, crypto is popular for being a decentralized currency, meaning it’s not tied to any banks. Secretary of treasury Janet Yellen, along with many other lawmakers, are also taking the idea of a stablecoin seriously.
A “stablecoin” is pretty much what you’d expect: something akin to Bitcoin, but backed by the USD, which isn’t as volatile as crypto.
The executive order implies that crypto will play a big part in the U.S. economy for the foreseeable future. Now for the elephant in the room: how cryptocurrency affects Russia’s ability to avoid America’s sanctions.
According to Yellen: “We will continue to look at how the sanctions work and evaluate whether or not there are liquid leakages and we have the possibility to address them. I often hear cryptocurrency mentioned and that is a channel to be watched.”
Cryptocurrency has been eyed by the Biden administration for some time and with these Russian sanctions underway, it’s a greater time than ever to evaluate these laws.
Past experiences in sanctions in Iran and Venezuela have informed Biden’s efforts with this new executive order.
Ultimately, there aren’t widespread evasions of sanctions using crypto. Still, they hope to nip it in the bud. It seems more like a preemptive solution for what Russia could do. It’s as if we’re attacking them on all fronts.
What are your thoughts on that? Of course, I’d love to know.