Joe Biden recently completed signing an executive order that instructs several agencies to focus on crypto derivatives, to study them, and eventually reach a far consensus on a regulatory strategy. Crucially, though, the order also focuses the attention of the Federal Reserve to the potential of a central bank digital currency.
Authoritative agencies such as the Departments of State, Homeland Security, Treasure, and Justice will be tasked with studying CBDC potentials, as well as issuing a future report on payment systems, and their roles in the CBDC.
The executive order has called for a 180 day frame time to develop multiple proposals concerning the aforementioned questions. Six key areas have to be scrutinized in these reports: financial stability, United States competitiveness, users protection, financial inclusion and lack of such discrimination, and strife for innovation.
Some are stating that the order comes somewhat late, considering that over 100 countries are heavily investing in cryptocurrency-based researched, all led by government-backed institutions.
Currently, the general consensus is that cryptocurrencies should not be treated as a part of a company, unlike stocks for example. Also, crypto assets are currently deregulated, and their underlining worth is generally ambiguous across nations and companies.
Meanwhile, rapid fluctuations in crypto and commodities prices have somewhat expedited the process of regulating the crypto market in the US, a direct result of global turmoil resulting form the Ukraine crisis, as well as the world-wide spread scammer practices.
