Bitcoin, Ethereum, Cardano, and Solana all fell on after Yahoo! Finance reported President Biden may tighten oversight on cryptocurrencies.
“The President of the United States is expected to issue an executive order next week directing agencies to study cryptocurrencies and a central bank digital currency (CBDC) and formulate a strategy to regulate digital assets,” Yahoo's Jeniffer Schonberger reported.
An executive order will direct a Financial Stability Oversight Council (FSOC) study on CBDCs in light of the ongoing debate. As part of the CBDC system, the Director of the Office of Science and Technology Policy also needs to provide feedback. Numerous state agencies, including the Department of Justice, Homeland Security, the Department of State, and the Department of the Treasury, need to report on the future of money and payment systems as well. The deadlines for the reports have not been set.
President Biden and other legislators have been calling for more stringent crypto laws in the wake of an ongoing heated debate over crypto. Bloomberg reported that Treasury Secretary Janet Yellen is at the center of a dispute between Treasury's staff and the White House over delays in signing the executive order (which was supposed to be signed last month). Experts claim that this, combined with the fact that the U.S. is more focused on the Ukrainian dispute, might push the executive order forward.
"There is a lot of talk today about a crypto Executive Order. Jeff Roberts, an executive editor for Decrypt and a lawyer, told me it probably won't drop until early March. "Also, "Executive Order" sounds dramatic, but Biden can't really do too much other than tell agencies to develop policy. The real action will come from the Treasury, OCC, and Fed.
As part of Thursday's announcements, the FBI commissioned a new crypto unit while the DOJ appointed a top computer crimes prosecutor to deal with growing cases of crypto-related crimes. This is seen as a step in the right direction despite the lack of comprehensive crypto legislation in the U.S.
Despite this, traders continue to brace for an increasingly unpredictable regulatory environment, with crypto-assets suffering the most. Following Yahoo’s report, almost $300M liquidations were reported in the last 36 hours.
As of press time, Bitcoin is trading at $40,400 after losing all of its gains from the week, while Ethereum has dropped back below $3,000 and is trading at $2,793. In terms of current performance, Cardano, Solana, and Avalanche are down 3,37 percent, 5,58 percent, and 4,14 percent, respectively.