The executive order, which could be signed by Biden as soon as next month, would "put the White House at the center of Washington’s efforts to deal with cryptocurrencies," it was reported by Bloomberg, citing anonymous sources familiar with the matter.

The executive order is expected to outline economic, regulatory and national security challenges posed by cryptocurrencies and would call for reports from various agencies due in the second half of 2022—potentially looking at the systemic risks of cryptocurrencies and their illicit uses.

"U.S. president Biden is readying an executive order that will outline a comprehensive government strategy around cryptocurrencies and will ask Federal agencies to determine their risks and opportunities," analysts at digital asset market maker GSR wrote in a market update, warning that bitcoin and ethereum's "weak performance has been attributed to a general sell-off in risk assets."

"Other items causing investor concern include rising inflation and central bank policy accommodation removal, mounting speculation that Russia may invade Ukraine, omicron worries, and supply chain disruptions."

Government agencies and regulators have been struggling to get a handle on the fast-growing crypto market over the last year, with the Office of the Comptroller of the Currency (OCC), the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) all attempting to direct how different aspects of the crypto industry should comply with federal law.

Last year, SEC chair Gary Gensler called on Congress to give the agency more authority to better police cryptocurrency trading.

"[Crypto] is rife with fraud, scams and abuse in certain applications," Gensler said in August. "We need additional congressional authorities to prevent transactions, products and platforms from falling between regulatory cracks."

Originally Posted By ymer⏩