This article was originally published on Bankrate.com<\/a> by James Royal.<\/em><\/p>\n This article is brought to you by Bankrate. If you decide to purchase products through the links below, we may receive a commission. Pricing and availability are subject to change.<\/em><\/p>\n President Joe Biden\u2019s administration is preparing to regulate cryptocurrency. Biden signed an executive order Wednesday directing the federal government to study the impact of cryptocurrencies<\/a> on American consumers, investors and businesses. This broad review of digital assets also explores the creation of a U.S. cryptocurrency, a \u201cdigital dollar.\u201d<\/p>\n Federal agencies will now have months to review and prepare an assessment of these fast-growing digital currencies. According to the White House Fact Sheet<\/a> for the order, the government is looking at these issues, among others:<\/p>\n The risks to financial stability created by private cryptocurrencies<\/p>\n<\/li>\n Any risks to national security created by cryptocurrencies<\/p>\n<\/li>\n Issues surrounding using cryptocurrency to enable crime<\/p>\n<\/li>\n Environmental impacts involved with energy-intensive cryptocurrency mining<\/a><\/p>\n<\/li>\n The effects of cryptocurrency on economic competitiveness<\/p>\n<\/li>\n<\/ul>\n In addition, the government is examining the issues involved with a digital dollar and what it could mean:<\/p>\n The creation of a U.S. central bank digital currency<\/p>\n<\/li>\n Whether Congress would need to pass laws to establish a digital currency<\/p>\n<\/li>\n Any technical issues surrounding the creation of a digital currency<\/p>\n<\/li>\n<\/ul>\n With the total value of all digital currencies near $2 trillion, cryptocurrency is a substantial asset class that has been largely overlooked by U.S. regulators until relatively recently. The first cryptocurrency, Bitcoin, was introduced in 2009.<\/p>\n Major cryptocurrencies<\/a>, including Bitcoin<\/a> and Ethereum<\/a>, traded significantly higher on the news.<\/p>\n What the executive order means for crypto trading<\/strong><\/p>\n The move to examine cryptocurrency and consider potential regulations and a larger strategy for them is long overdue. The sector has been volatile and has been full of potential for chicanery, including in one of the purportedly safe crypto classes called stablecoins<\/a>, which the government has already been examining.<\/p>\n\n
\n