An executive order has been signed to establish a cryptocurrency working group that will be responsible for proposing new regulations concerning digital assets and assessing the potential for developing and maintaining a national stockpile of digital assets. Also included in this directive is a prohibition against the formation of a central bank digital currency (CBDC) to prevent competition with existing cryptocurrencies.
This working group will consist of key officials, including the Treasury Secretary and chairs from the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), alongside other agency leaders. An essential aspect of their mandate includes developing a regulatory framework for stablecoins, which are digital currencies linked to traditional fiat currencies.
The creation of this working group marks a significant step towards implementing a promise to revamp cryptocurrency policies in the United States. This recent executive order underscores the intention to enhance banking services availability for cryptocurrency firms. Despite the absence of any formal banking prohibitions against these companies, many have previously encountered difficulties in securing banking services.
Reports have indicated a possible shift in regulatory responsibilities, where the CFTC may be positioned as the primary authority overseeing cryptocurrencies, potentially diminishing the role of the SEC, which has handled the majority of enforcement actions against crypto entities thus far.
Following the changes in leadership due to new political circumstances, several interim heads known for their supportive stance on cryptocurrency have taken the reins at key regulatory agencies, including the SEC and the CFTC. Specifically, the Acting CFTC Chair has designated a specialist to focus on matters concerning cryptocurrencies, decentralized finance (DeFi), and other digital assets.
Despite a surge in the adoption of cryptocurrencies within the United States, the sector still lacks a comprehensive regulatory framework. In fact, major cryptocurrency exchanges have faced challenges, including lawsuits asserting the need for clearer policies from regulators. The emergence of regulatory frameworks like the Markets in Crypto-Assets Regulation (MiCA) established in the European Union serves as a significant point of reference, highlighting the need for a structured approach to cryptocurrency oversight.
As the United States contemplates its regulatory landscape, this movement signals an effort to provide greater clarity and facilitate the growth of the cryptocurrency industry, establishing a foundation for a robust framework that could potentially align it with international standards.