Back in late January, news of the White House planning to issue a crypto Executive Order tested support for the crypto market. The news came at a testy time for Bitcoin (BTC) and the broader market, which had seen a sharp fall from November levels.
Heightened regulatory scrutiny, not just from the SEC, but also from regulators around the world contributed to the reversal. Market sentiment towards FED monetary policy also weighed, however.
Calls for Global Regulatory Framework Echo
Late last year, the Bank of England highlighted the need for a global crypto regulatory framework. Concerns over the possible impact of cryptos on financial stability have been key to the shift in the regulatory landscape. Other governments and agencies have also joined in the call for a global crypto regulatory framework.
Adding to government and regulator concerns has been a sharp increase in illicit activity. As a result, the White House announced last month an imminent Executive Order to task agencies with the regulation of cryptos as a matter of national security.
The White House had also stated that U.S agencies will need to work with regulators around the world. The general sentiment has been that the Executive Order could form the beginnings of a global crypto regulatory framework.
White House Executive Order Due Out Next Week
Overnight, news hit the wires that the Biden Administration will issue the crypto executive order as soon as next week. Reportedly, the executive order will task the Treasury Department, the State Department, and the Attorney General’s Office with looking into the rollout of a U.S issued central bank digital currency (CBDC).
According to the news, other areas of focus will include financial stability and environmental impact. Agencies will also need to identify ways to mitigate risks stemming from cryptos. Significantly, the U.S government will be reportedly looking to coordinate with other countries to standardize crypto regulations.