US to issue executive order on cryptocurrency this week

New Delhi: The US administration will be issuing an executive order on cryptocurrency this week, with the administrative officials aware of the matter. The executive order will administer a wide range of government agencies to study cryptocurrencies and CBDC and plan to work something on a government-wide strategy to regulate crypto assets.

Moreover, the executive order will look after consumer, business, and investor protection measures. It will also address issues related to stablecoins, privacy, and distributed ledger technology (DLT).

The government agencies will be working to fulfill these responsibilities in this direction:

• Multiple government bodies will be asked to come up with a report on the future of the money and payment system.
• Government bodies consist of Departments of the Treasury, State, Justice, and Homeland Security.
• The Financial Stability Oversight Council (FSOC) will be allowed to look after financial stability issues concerned with digital assets.
• The Attorney General, the Federal Trade Commission (FTC), and Consumer Finacial Protection Bureau will examine the relationship between the growth of the crypto sector and its impact on market competition.
• In January 2022, the FTC had warned about misleading and fraudulent crypto ads and various crypto investment scams with the use of social media.
• The Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) will consider market protection measures within their jurisdiction.

• SEC Chairman Gary Gensler said that SEC will collaborate with CFTC to ensure investor protection.
• The Treasury Department will work on compiling reports on ways of protecting against risks from crypto after consultation with SEC, CFTC, and federal banking agencies.
• The government will also try to coordinate with other countries to standardise crypto rules
• Robert Ophèle, a member of the Financial Stability Board (FSB), said that the present foundation of crypto regulation is not appropriate for the development of cross-border digital market activities.