Stablecoins to be included in 10/18 FSOC agenda, Bloomberg reports: White House considering executive order to regulate cryptocurrencies

Bloomberg cited anonymous sources as saying that the Biden administration is considering drafting an executive order on cryptocurrency. A government official stated that even if Biden does not push for this, the government will still publicly address its overall strategy on cryptocurrencies.

According to a report by Bloomberg, an upcoming executive order is expected to require various federal agencies to research the crypto space and provide recommendations on aspects such as financial regulation, economic innovation, and national security. Participating agencies include the Treasury Department, financial regulatory agencies, the Commerce Department, the National Science Foundation, and national security agencies.

Anonymous sources suggest that the plan aims to coordinate the regulatory scope of various agencies under all executive departments in the digital currency space, encouraging departments with low focus on cryptocurrencies to get involved. The government is also considering appointing a "crypto czar" as a central figure for the initiative.

As of now, insiders claim that a decision has not been made on the issuance of the executive order, and the White House has declined to comment on the crypto plan.

With the cryptocurrency market rebounding, the total market value has once again reached $2 trillion, with Bitcoin's market value surpassing $1 trillion and reclaiming its position above Facebook, which recently experienced a major outage, ranking eighth globally in terms of assets.

As the market heats up, remarks from SEC Chairman in public appearances highlighting the lack of regulation in the crypto space and the potential threat stablecoins pose to the US dollar may add credibility to the White House's oversight of cryptocurrencies.

However, due to the nature of anonymous sources and recent reports from Bloomberg unable to provide sources claiming that stablecoin issuer Tether is using Chinese commercial paper as reserves, along with past criticisms, the crypto community generally remains skeptical of the news regarding the Biden administration's proposed executive order on cryptocurrencies.

Yet, in early September, Bloomberg similarly cited anonymous sources reporting that "the US Treasury Department and relevant federal regulatory agencies are about to decide whether to conduct a review of stablecoins such as Tether through the Financial Stability Oversight Council (FSOC)."

According to a notice on the US Treasury Department's website, stablecoins have been confirmed to be on the regulatory agenda. The Financial Regulatory Agencies Group will hear the latest report on stablecoins at the meeting on October 18.

It is understood that the report is expected to support regulating stablecoins as a form of bank deposit, and the meeting will also discuss whether FSOC should consider stablecoins as a potential risk to financial stability, with US Treasury Secretary Yellen leading the meeting.