Biden’s Crypto Executive Order to Delay After a Split Between Yellen and White House
On FEB 17, 2022, Bloomberg reported that reliable sources leaked that the expected White House executive order on cryptos may delay. The delay is caused by an ongoing feud between Treasury Secretary Janet Yellen and the White House. The row arises from the incoming regulations scope and the possibility of developing a digital dollar.
Yellen’s Feud With the White House to Delay Biden’s Executive Order
Earlier today, reports regarding a split between the White House and the Treasury Secretary Janet Yellen surfaced. The reports claim that the feud will cause a delay in the release of the expected crypto executive order by the White House.
According to a Bloomberg report, Yellen disagrees with the scope of regulations included in the order and possibility of a digital dollar. The order targeted to set the stage for a federal strategy on regulating digital assets and was to be signed at the beginning of the year. However, it did not happen as an altercation between the Treasury and National Economic Council caused delays in its preparation.
By now, Senior administration officials have already drafted a version ready for the President’s consideration. However, the ongoing Ukraine crisis can pause its enactment.
Why Yellen Is Against the Available Executive Order Draft
Janet Yellen is against the whole plan to sign the executive order and issuance of a Central Bank-controlled digital dollar. She said that the Federal Reserve, which made a report last month, is still working on the topic and should have more time to consider all possible solutions.
The Treasury has expressed to the White House that her team, federal regulators, and the SEC have been making progress in giving citizens more clarity on digital assets.
However, Treasury spokesperson John Rizzo claimed that the authority worked with administrative partners, including the White House. A White House spokesperson also claimed that the administration has a united front drafting the rules.
Crypto Regulation in the US
Federal US agencies have been issuing ‘clarity’ on digital assets independently over the past years. Now Biden’s team is under pressure to unite them. Over the years some crypto industry executives lamented the lack of legal clarity in the US. Others worried that an early crypto embrace by other nations would challenge US’s economic power.
Following the continuous demand for a legal crypto guidance structure, the White House began drafting the rules last August. President Joe Biden appointed several financial regulators to make up a working team. The team has been working under tight conditions to improve its oversight of the crypto space.
Regulators have also been raising concerns over the lack of investor protection and possible risks to the country’s financial stability. National security agencies in Biden’s administration have also been grappling with a large case of cryptos usage in ransomware attacks. Relating to current crypto regulations, federal authorities have been acting independently, which has confused the investors.
Now, Biden’s team seeks to unite the authorities to develop a uniform strategy. Per Bloomberg, a late draft of the executive order encompasses economic, regulatory, and national security challenges posed by digital assets. It will also call for reports from various federal agencies across the administration in H2 of 2022.
