A schism between crypto corporations and the US government over how sanctions against Russia should be enforced appeared to have reached a breaking point, drawing the attention of the White House.
According to Bloomberg, individuals familiar with the situation have claimed that President Joe Biden will sign an executive order this week defining the US government’s plan for cryptocurrencies, ending a two-week standoff since the US imposed sanctions on Russia.
Furthermore, Executive Order ‘E.O’ is intended to completely address the regulatory, economic, and national security concerns posed by digital assets, and will compel federal agencies to submit their reports by the end of the second half of 2022.
The Financial Stability Oversight Council (FSOC), which has been monitoring the financial risks presented by cryptocurrencies, and the United States Department of Treasury are among those anticipated to submit reports.
According to sources, the E.O. will also give particular tasks to a wide range of state departments and agencies in crafting an all-around digital asset strategy to ensure that the United States maintains its competitive edge in the face of the explosive expansion of digital assets globally.
Although the White House has yet to respond, this E.O. may also herald the end of a lengthy dispute about CBDCs that the FED threw to Congress earlier this year, since the POTUS may expect the entire matter to be resolved by May 2022.
As the risks of utilizing cryptocurrencies to conduct crimes become more apparent, Biden’s administration has been under pressure to offer regulatory clarity on digital assets.
Although Coinbase has already pushed the envelope by barring certain Russian organizations that are not on the sanction list, other crypto corporations continue to underestimate the potential of cryptocurrency to pose actual economic threats.
Binance CEO Changpeng Zhao ‘CZ,’ for example, has stated that the market capitalization of cryptocurrency is still much below the global threat threshold, which some in Washington disagree with.
Last week, a group of US legislators led by Senator Elizabeth Warren and Senate Committee Chairman Sherrod Brown addressed a letter to Treasury Secretary Janet Yellen, voicing concerns about Russia’s use of cryptocurrency to avoid sanctions.
Aside from the United States, Singapore and the European Union have pledged to adopt measures, some of which are expected to go beyond the scope of existing legislation, to prevent Russia from exploiting cryptocurrency to circumvent sanctions.