The government of the United States is planning to crack down on the rapidly growing cryptocurrency network. Some analysts postulate that the time has finally arrived when the centralized financial systems are creating a fence around the digital asset industry. However, a close look at the official document of EO reveals that the legislation is far from restrictive.
The inspection of the Executive Order reveals that the focus of the White House administration is granting a higher regulatory power on the cryptocurrency space. In a few hours, President Biden will proceed to sign the EO. Rather than banning digital asset trading or mining, the state is working on changing the beneficiaries of the nascent industry.
With the Russia and Ukraine war, it has become increasingly visible that even the cryptocurrency industry is not free from the influence of big old players. At present, the largest cryptocurrency reserves and crypto exchanges are under the influence of traditional financial giants. At the behest of the Vice PM of Ukraine, several crypto exchange platforms isolated and blacklisted Russian digital assets.
Future of Cryptocurrency
With the implementation of crypto EO, the regulatory agencies will have a stronger grasp on the cryptocurrency market. By the decree of the EO, Treasury Department will have the power to set a precedent for consumer risks parameters. Furthermore, the Financial Stability and Oversight Council will treat the matter of crypto regulations under the pretext of national security and international financial crimes.
The objective of POTUS behind issuing the crypto EO is maintaining the position of the United States as the trendsetter in the financial markets. Rather than banning the cryptocurrency industry, the EO will lay the foundation for the state departments to have deeper control of the nascent industry. US government is also presenting the EO as a defensive strategy against the Russian government although cryptocurrency reserves will not be enough for the country to dodge the financial boycott of the Western bloc.
Furthermore, the Treasure Department and Federal Reserves are working on increasing research on the digital assets industry to issue projections about the future of the financial markets and payment systems. Due to an error on the part of Janet Yellen, the Secretary of the Treasury Department, the contents of the EO were leaked to the public.