President Biden’s Administration Finally Publishes Cryptocurrency Order.
Following the rapid growth of digital currencies over the last five years from a valuation of $14 billion to over $2 trillion in the last five years, president Joe Biden’s administration has released the first of its kind executive order for the nascent asset class.
The order signed by president Biden today directed various federal agencies to coordinate their approach toward the sector for effective communication.
Despite the directive, the bill did not specifically recommend guidelines for each agency to provide new regulations for the cryptocurrency industry.
According to a statement issued by Janet Yellen, Secretary of the Treasury Department yesterday, the newly released executive order mandates the department to publish a report on the future of money, especially on the shortcomings of the existing financial systems.
The focus of the executive order centers on financial stability, consumer protection, curbing the illicit use of cryptocurrencies, and global financial inclusion, among others.
President Biden signed an Executive Order outlining the first-ever, whole-of-government approach to addressing the risks and harnessing the potential benefits of digital assets and their underlying technology:
- Protect U.S. Consumers, Investors, and Businesses.
- Protect U.S. and Global Financial Stability and Mitigate Systemic Risk.
- Mitigate the Illicit Finance and National Security Risks Posed by the Illicit Use of Digital Assets.
- Promote U.S. Leadership in Technology and Economic Competitiveness to Reinforce U.S. Leadership in the Global Financial System.
- Promote Equitable Access to Safe and Affordable Financial Services.
- Support Technological Advances and Ensure Responsible Development and Use of Digital Assets.
- Explore a U.S. Central Bank Digital Currency (CBDC) by placing urgency on research and development of a potential United States CBDC, should issuance be deemed in the national interest. The Order directs the U.S. Government to assess the technological infrastructure and capacity needs for a potential U.S. CBDC in a manner that protects Americans’ interests.
- 16% of adult Americans invested in crypto. It creates an opportunity to reinforce American leadership in the global financial system and technological frontier, also has substantial implications for consumer protection, financial stability, national security, and climate risk.
It is worth noting that the long-anticipated order also did not state-specific rules that crypto-related companies, including trading platforms, should abide by.
Recall that Russia was slammed with multiple sanctions, including the country’s financial institutions’ removal from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) following its invasion of Ukraine.
The entire cryptocurrency community had anticipated that the Biden administration’s executive order on cryptocurrencies would be very strict on the industry.
Many speculated that the Biden administration could impose stricter regulations on the nascent asset class following rumors that Russia could adopt digital currencies to evade financial sanctions.
However, in contrast to rising fears, Yellen eased the tension by first disclosing how the Treasury Department plans to comply with the executive order.
Moments after the post was published on the treasury website, it was immediately taken down. Interestingly, her statement did not stop cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Cardano (ADA) from rallying.