Editor’s Note: Morning Money is a free version of POLITICO Pro Financial Services morning newsletter, which is delivered to our s each morning at 5:15 a.m. The POLITICO Pro platform combines the news you need with tools you can use to take action on the day’s biggest stories. Act on the news with POLITICO Pro. NEW THIS MORNING — The White House today will unveil President Joe Biden’s cryptocurrency executive order, which directs federal agencies to produce a series of reports over the coming months that will lay out the future of U.S. policy toward digital assets — including the possible launch of a federally issued digital dollar. The order will urge the Financial Stability Oversight Council to study the effects of digital assets on financial stability and recommend ways to close any regulatory gaps. It will also task the Commerce Department with developing a framework to ensure the U.S. remains competitive in digital assets. Other agencies will explore crypto’s environmental impact and technological changes needed for further adoption. From our Sam Sutton: “ The highly anticipated executive order follows months of speculation around how Biden planned to coordinate the federal government’s oversight of crypto marketplaces that whipsawed between $1 trillion and $3 trillion in size during the first 14 months of his term. Lawmakers and federal agencies have struggled to develop a cohesive regulatory framework for the upstart industry, which has quickly emerged as a major force on Wall Street and on Capitol Hill.” While the order stops short of setting policy , Sam says, officials framed it as a necessary first step to clarify the U.S.’s uneven approach to policing digital assets. “Without oversight, the explosive growth in cryptocurrency use would pose risks to Americans to the stability of our businesses, our financial system and our national security,” one senior administration official said on a call with reporters. A top priority for the administration: A whole-of-government exploration of a digital dollar, the official said. U.S. BANS RUSSIAN OIL — Biden, facing growing pressure from Congress, announced a ban on all Russian oil, gas and energy imports Tuesday. Several factors drove Democrats to prod their own president to ban Russian oil imports with stunning speed, our Andrew Desiderio, Jonathan Lemire, Josh Siegel and Steven Overly report. But perhaps the most important was the messenger: Ukrainian President Volodymyr Zelenskyy. The move was largely symbolic : Only about 9 percent of U.S. oil imports came from Russia last year, and daily U.S. purchases amount to about 700,000 barrels a day. By comparison, Russian oil makes up about a third of European imports, or roughly 4.5 million barrels a day. Unlike previous sanctions announcements, which have been closely coordinated with U.S. allies, the White House made this move without most of its Western allies. “The United States is able to take this step because of our strong domestic energy production and infrastructure,” a senior administration official said. “And we recognize that not all of our Allies and partners are currently in a position to join us.” That means, at least for now, the boycott won’t do much to slow the flow of energy revenue that the Kremlin is relying on to keep financing the government and paying for the war in Ukraine. U.S. gas prices, meanwhile, jumped on the news, hitting a record $4.17. “For households, rising energy and food prices resulting from shortages and supply dislocations mean larger portions of their budgets will be allocated towards these purchases, away from other spending,” High Frequency Economics Chief U.S. Economist Rubeela Farooqi said in a note. Some numbers from Farooqi: In 2019, 229 million U.S. drivers consumed roughly 146 billion gallons of gasoline. Prices then averaged roughly $2.61 – implying annual gas expenditures of $1,665 per driver. At today’s prices, that means annual spending would rise to about $2,660 per driver. GOP cheers, jeers: Republicans simultaneously praised the import ban, but slammed the White House over energy policies that they say have spurred higher prices at the pump. “I expect our Democratic friends will now try to blame the entire increase in prices on our effort to punish Russia, but don’t be fooled,” Senate Minority Leader Mitch McConnell said on the Senate floor. “It would sure be nice if America had gone into this crisis with more headroom on supply and on gas prices,” he added. Biden said it’s “simply not true” that his policies are holding back domestic energy production. “We’re approaching record levels of oil and gas production in the United States, and we’re on track to set a record of oil production next year,” he said. The senior administration official put a finer point on it, aimed at Wall Street: “We need our domestic oil and gas industry to use their leases, use their permits, use financing from Wall Street to respond to price signals and continue increasing their production. This is a time for Wall Street to step up, for oil and gas companies to step up and invest in America's energy future.” Reality check? Asked by reporters whether he had a message for Americans on surging gas prices, Biden offered this blunt assessment: “They’re going to go up.” “What can you do about it?” a reporter asked after Biden arrived on Air Force One in Texas. “Can’t do much right now,” he said. “Russia is responsible.” IT’S WEDNESDAY — More big news out of Russia: McDonald’s, Starbucks, Coca-Cola and other major U.S. consumer brands said they would shut down operations in the country amid Putin’s Ukraine invasion. We’re reminded of a young Moscow resident who fretted about the possibility of his beloved McDonald’s shuttering in a WSJ video on what the war looks like in Russia. What does this mean for Putin’s information war? Let us know what you think, and send us your story ideas, tips, and feedback at kdavidson@politico.com or aweaver@politico.com, or find us on Twitter @katedavidson or @aubreeeweaver.
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