The United States’ sanctions on Russia after the invasion of Ukraine failed to account for one thing: cryptocurrency. While the assets of Russian oligarchs were frozen, they were still able to use crypto exchanges, much to the ire of President Joe Biden.
After a strong push from former presidential candidate Hillary Clinton, the current US president will finally start to tackle crypto regulations. As for crypto enthusiasts, brace yourselves, as these regulations are coming sooner rather than later.
Joe Biden on crypto regulations
Reported by The New York Times, the United States president is scheduled to sign an executive order on Wednesday to regulate cryptocurrency. After a tumultuous year for the techno-dosh, massive restrictions are expected to take place.
The executive order, allegedly in the works for months, will seek to make digital currencies safer for both average citizens and governments. Reports claim that the order will be focused on taking the financial risks for “consumers and the economy.”
The order aims to enforce policies that will remedy six areas of cryptocurrency. These include: “consumer/investor protection; financial stability; illicit finance; U.S. leadership in the global financial system and economic competitiveness; financial inclusion; and responsible innovation.”
As cryptocurrency becomes more prominent in everyday life, these regulations are massively needed. The decentralised monetary platform has often been criticised for its massive drops in worth, its use in illegal activities and other issues.
Why is this being done now?
The rush for the Biden administration to take action on cryptocurrency is coming rather late. However, it comes at an important time for the digital technology. Additionally, it’s poking holes at America’s plans at the time of writing.
Currently, America is trying to completely freeze Russia’s financial assets that are housed in the United States. However, Russians are still able to use crypto exchanges without any issues, causing the virtual money to become heavily used.
While many have called for regulations on the technology for years, it’s only now that the United States is acting on this. It just goes to show: when something doesn't match up with what America wants, that's when it gets killed.