President Joe Biden is expected to sign a new executive order on cryptocurrency that aims to start the process of regulating the digital currency, per Bloomberg.
What’s happening: The new executive order — which has been in the works for months — will explain what government agencies, like the Treasury Department, should do next to develop policies and regulations against cryptocurrency coins and tokens, per The Associated Press.
- The order will also ask the State Department to make sure cryptocurrency laws sync up with crypto laws among U.S. allies.
- And it will ask the Financial Stability Oversight Council to study financial concerns of cryptocurrency, according to The Associated Press.
Why it matters: Biden’s new order will be “an important step toward providing clarity for an industry that has already disrupted traditional banking and payment systems. Still, it may face resistance from many in the industry, who argue that the whole point of cryptocurrency is to avoid government control,” according to Politico.
Be smart: Biden’s move to regulate cryptocurrency could be a sign that cryptocurrency will soon be used more regularly and that it will be accepted more commonly among the masses.
The bigger picture: The U.S. has been slow to add regulations for cryptocurrency compared to foreign governments, according to Politico.