Biden to sign executive order on additional regulation of cryptocurrencies

U.S. President Joe Biden will sign an executive order on Wednesday to develop new regulations in the country on the use of cryptocurrencies, Washington, in particular, expects that it will increase the effectiveness of U.S. sanctions.

The measure aims to harmonize “a comprehensive governmental approach to addressing the risks and potential benefits of digital assets and their underlying technologies.” Under the executive order, U.S. agencies must make recommendations to mitigate the risks to consumers, investors, and entrepreneurs associated with the “growth of the digital asset sector.” In addition, regulators must ensure proper oversight in this area.

These measures, in particular, should help prevent situations in which hackers using ransomware viruses manage to obtain ransom in cryptocurrency. The administration will also continue to actively combat the abuse of cryptocurrency, including its use to circumvent U.S. sanctions. This applies equally to the crisis involving Russia and Ukraine as it does to any country, regime, or unconnected force that seeks to undermine U.S. national security. The U.S. side does not consider “the use of cryptocurrency a viable method for Russia to circumvent financial sanctions.”

The lack of sufficient oversight could also allow criminals or other actors engaged in malicious activity to use cryptocurrency to launder illicit funds or circumvent properly imposed sanctions. At the same time, the use of digital assets could provide opportunities in terms of American innovation and competitiveness. The executive order has been a work in progress “for many months.”

U.S. Undersecretary of State for Political Affairs Victoria Nuland said Tuesday that Washington and its allies in Europe are exploring options to limit Russian access to cryptocurrency.