Biden Signs Executive Order on Crypto
U.S. President Biden is set to sign an Executive Order to expedite the regulation of digital assets including cryptocurrencies.
A recent press release from the White House outlines the main objectives of the Executive Order, which contains the “first whole-of-government strategy to protect consumers, financial stability, national security, and address climate risks.”
One of the key takeaways from the order is the new focus on a unified national policy between the many government agencies involved in finance and technology. Currently the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Internal Revenue Service (IRS) and other agencies all have varying descriptions and mandates pertaining to cryptocurrency. This has left investors with a confusing gamut of laws and regulations to contend with that can vary wildly even state to state.
The press release highlights the fact that the rise in digital assets “creates an opportunity to reinforce American leadership in the global financial system and at the technological frontier.” Atleast 40 million American adults (16%) have either invested in, traded, or used cryptocurrencies. The Chinese mining ban in May 2021 has pushed the Bitcoin mining industry out of China, where the U.S. is now the home for the largest mining community in the world. The opportunity to capitalize and secure the United States’ place as the leader in a growing and innovative field is the best move the Biden Administration can make towards crypto.
The Executive Order will unite government agencies in:
protecting U.S. consumers, investors, and businesses
protecting U.S. and global financial stability and mitigate systemic risk
mitigating the illicit finance and national security risks posed by the illicit use of digital assets
promoting U.S. leadership in technology and economic competitiveness to reinforce U.S. leadership in the global financial system
promoting equitable access to safe and affordable financial services
supporting technological advances and ensure responsible development and use of digital assets
exploring a U.S. Central Bank Digital Currency (CBDC)
While all of these goals are important and beneficial to the regulatory state of crypto in the U.S., the signs of a heightened exploration of a U.S. CBDC indicate that the U.S. government is aware of their lack of progress in terms of issuing a digital currency compared to others including China who have already implemented mass trials.
It remains to be seen how the U.S. will act on these proposals, but the Executive Order lays down the foundation that will provide further clarity and guidance to regulators, lawmakers, and investors in the field.