President Joe Biden is expected to sign a cryptocurrency executive order this week in a step toward regulating how digital currency is traded.
The move comes as administration officials have raised concerns in recent weeks about Russia's use of cryptocurrency to evade the impact of crushing sanctions in response to its invasion of Ukraine. The sanctions have sent the ruble to historic lows and have closed the country's stock market.
Additionally, the order will explore the possibility of a new central bank digital currency. The Federal Reserve issued a paper on the topic in January that explores the risks and benefits of U.S.-backed digital currency. "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. I often hear cryptocurrency mentioned and that is a channel to be watched," Treasury Secretary Janet Yellen said last week.