Biden to sign executive order on regulating, issuing cryptocurrency

President Biden is reportedly set to sign an executive order on cryptocurrency this week that will direct several federal agencies to investigate and develop policies and regulations on digital currencies.

The order is likely to be signed Wednesday, according to Reuters, and would be the White House's first step toward regulating cryptocurrency.

It will reportedly outline what the federal agencies, including the Treasury, State and Commerce departments, need to do to develop regulations and policies on the cryptocurrency market, according to The Associated Press.

The order will ask the State Department to make sure that American cryptocurrency laws align with those of U.S. allies, the AP reported. It will also reportedly task the Financial Stability Oversight Council, which identifies risks to the country's financial stability, to investigate any financial concerns.

And it will request the Justice Department to look into whether a new law is needed to create a new currency, according to Reuters, with the Consumer Financial Protection Bureau and other agencies studying the consumer impact.

The order comes amid concerns over whether Russia could use cryptocurrency to get around the crushing U.S. sanctions issued in response to its invasion of Ukraine.

"We will continue to look at how the sanctions work and evaluate whether or not there are liquid leakages and we have the possibility to address them," Treasury Secretary Janet Yellen said last week, according to the AP. "I often hear cryptocurrency mentioned and that is a channel to be watched."

On Monday, the Financial Crimes Enforcement Network in a statement advised "all financial institutions to be vigilant against potential efforts to evade the expansive sanctions and other U.S.-imposed restrictions" in connection to Russia's war on Ukraine.

"Although we have not seen widespread evasion of our sanctions using methods such as cryptocurrency, prompt reporting of suspicious activity contributes to our national security and our efforts to support Ukraine and its people," acting Director Him Das said.