Speculations have arisen that the Biden administration is contemplating an executive order against cryptocurrencies. A Friday report from Bloomberg has been cited as the source of the news. The report has set off a new round of debate in the crypto community. If issued, the executive order will allow for the strict regulation of digital currencies.
Although there are ongoing efforts by regulatory bodies in the US to regulate cryptocurrencies, an executive order from the president would emphasize them. While the reports of an executive order remain unconfirmed, it is alleged that the US president already has cryptocurrencies in his crosshairs and is also seeking to better understand the industry as well as control the operations going on within.
Proposed Executive Order to Step Up Efforts on Crypto Regulations
The US administration is reportedly weighing its options on what an executive order would mean for the crypto industry. Per details of the proposed order, federal agencies would be charged with the responsibility of researching and submitting recommendations on important areas of cryptocurrencies bordering on financial regulation, economic innovation, and national security. Citing unnamed sources, Bloomberg’s report claimed that the order will also look at coordinating the efforts of regulators over digital currencies at the executive level.
Executive Order: Global Crypto Community Divided, Some Express Support for Reasonable Regulations
The crypto community is divided over the proposed order. Crypto regulations have always been a subject of controversy among proponents of the asset class. A section of the community comprising Tesla CEO and billionaire Elon Musk and CEO of Bitcoin.com Roger Ver believes that cryptocurrencies are better off without regulations and that the regulatory attempts being made by authorities are just to monitor the industry, seize the freedom people enjoy from the assets and ultimately control them.
The other section featuring crypto proponents like Microstrategy CEO Michael Saylor and Ripple founder Brad Garlinghouse has advocated for clear and comprehensive regulations which they think will encourage the mainstream adoption of cryptocurrencies, especially by institutions. SEC commissioner Hester Peirce is also an advocate for mild regulations that will still allow room for innovations.
Amid the debate, stablecoins have attracted more attention from US regulators than other cryptocurrencies. This is because due to the relationship they share with the US Dollar, most investors in the US are now hiding behind them to evade taxes. Apart from this, it has been argued that stablecoins threaten the hegemony of the US Dollar. This argument was put forward by US SEC chairman Gary Gensler in one of his recent statements. According to Gensler, that and many other reasons highlighted the need for regulations.