The Biden administration is about to make an important announcement on cryptocurrencies

The Biden administration is reportedly drafting “a government-wide crypto strategy” as an executive order.

The directive will detail the economic, regulatory and national security challenges posed by cryptocurrencies. Directs various federal agencies to weigh in with their assessments of the risks and opportunities of cryptocurrencies,” according to Bloomberg.

The directive is expected to be presented to US President Joe Biden in the coming weeks, while the “crypto strategy” could be announced as soon as next month, according to Bloomberg.

Senior US officials have held many meetings on this issue. Regulators are required to submit their reports on cryptocurrencies by the second half of 2022.

The Financial Stability Oversight Council (FSOC) will be tasked with assessing the possible systemic effects of digital assets, identifying instances of illegal use of cryptocurrencies.

Additionally, the Biden Administration will also weigh in on the prospect of the Fed issuing a central bank digital currency (CBDC).

The Fed recently released a long-awaited report on a US-developed CBDC and is currently open for public comment through August 20.

Many experts expressed concern that the US is lagging behind other countries, especially China, in the development of digital currencies. However, recently, Fed Chairman Jerome Powell affirmed: “The United States will not be left behind and the US dollar becomes the world’s reserve currency risk-free.”

Before the Biden Administration released important reports on cryptocurrencies, the cryptocurrency market was undergoing a strong correction. In which, many dong had a double-digit decrease, from 20% to 40% compared to the past 7 days.

In addition to the above information, some sources recently said that the Fed is expected to raise interest rates 3 times in 2022 – which could cause the stock market and the Crypto market to “shake” strongly.

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