The cryptocurrency market is booming. It’s been growing year after year and has the potential to change the world in many ways.
The White House is taking further steps to supervision the use of cryptocurrency this week, with President Joe Biden signing an executive order which will require federal agencies to provide more oversight.
Founded as a response to the rapid rise in crypto-related crimes and frauds, this commission will be given the responsibility of overseeing cryptocurrency transactions, such as the buying and selling cryptocurrencies through banks or other financial institutions.
The order will require all federal agencies to report on the risks associated with cryptocurrencies and focus additional attention on the unauthorized movement of funds.
According to Politico and the Associated Press, Biden will sign an executive order this week that urges government agencies to handle Bitcoin and other digital assets.
That is especially important following recent hacks in which over $500 million worth of bitcoin was stolen from various exchanges.
The possible concerns they offer include:
- Challenges to national security.
- Risks to the supremacy of the dollar.
- An additional difficulty in halting illicit activities.
Sources said the executive order on cryptocurrencies was scheduled to be published this week, and it had been in the works long before the conflict.
The order is an essential step in protecting investors and preventing money laundering.
The action comes as administration officials have highlighted worries in recent weeks about Russia’s use of cryptocurrencies to dodge the effect of punishing sanctions in response to its invasion of Ukraine. The sanctions have brought the ruble to record lows and have halted the country’s stock exchange.
The Federal Reserve stated it would seek public feedback on issuing an entirely digital U.S. dollar in January. That might serve as a more solid alternative to other digital kinds of money.
And this month, the Justice Department designated its first head of the National Bitcoin Enforcement Team, Eun Young Choi, who would be entrusted with pursuing criminal cases linked to the usage of cryptocurrency and digital assets.
While many people fear what the future may hold for cryptocurrencies, this executive order will show that there are structures to prevent further abuses. Though it’s not a guarantee, it’s an answer to improving crypto regulation and could help maintain some semblance of order in the space.