Bitcoin and the broader crypto sector stumbled (even more) following a report from Bloomberg that President Joe Biden is set to sign a long-awaited executive order this week that will outline the U.S. government’s strategy for cryptocurrencies.
According to the report, Biden's EO will direct federal agencies "to examine potential regulatory changes, as well as the national security and economic impact of digital assets." It comes at a time when the White House’s approach to crypto has attracted fresh attention amid concerns that Russian firms and olligarchs could use crypto to evade the restrictions.
Previously Bloomberg reported that the order, which has been in the works since last year, will require federal agencies across the government to report later this year what they’re doing regarding digital assets as Biden’s team comes under pressure to play more of a coordinating role as industry executives bemoan what they say is a lack of clarity on U.S. rules.
Meanwhile, the crypto industry is facing intense scrutiny from lawmakers, including Senator Elizabeth Warren and Senate Banking Committee Chairman Sherrod Brown, over concerns that sanctioned individuals and firms in Russia may be using digital assets to bypass the sanctions.
Still, some analysts and officials have questioned how effective a workaround crypto could be, given the limited size of the market, which is correct in light of recent revelations that just one traditional bank, Credit Suisse, was instrumental in helping launder and hide around $100 billion in illicit funds in recent years.