Joe Biden has signed his 82nd executive order since taking office in January 2021, directly addressing a regulatory framework for digital assets at an unusual time for the US president.
In an announcement made on Wednesday, The White House said President Biden’s executive order required government agencies to explore the potential deployment of a US central bank digital currency, as well as coordinate and consolidate policy on a national framework for cryptocurrencies. Many media outlets previously reported that the US president had initially planned to sign the executive order in February, an event that was likely postponed following Russia’s military actions in Ukraine.
The reaction from many industry leaders likened the executive order to a regulatory opportunity — Biden had rarely spoken directly about crypto and blockchain during his presidency. Reports suggested that the situation with Russia potentially using the digital currency to evade US sanctions may have contributed to the US president not waiting any longer.. The executive order mentioned the risks of circumventing sanctions three times, a sentiment echoed by National Economic Council Director Brian Deese and National Security Advisor Jake Sullivan:
“The approach outlined in the EO will strengthen US leadership in the global financial system and safeguard the long-term effectiveness of critical national security tools such as sanctions and anti-money laundering frameworks.”
Lawmakers and regulators were quick to comment on the executive order. Treasury Secretary Janey Yellen, who may have prematurely issued her statement on the matter, said EO could “result in substantial benefits to the nation, consumers and businesses” by supporting innovation while addressing risk. of the industry. Massachusetts Senator Elizabeth Warren, who has often associated cryptocurrencies with illicit acts, said that Biden was “right to highlight the risks of cryptocurrencies,” and added that the US government needed “strong rules before it’s too late.”
“While I agree with the President’s desire to combat money laundering and defend the national security of the United States, I believe his executive order overlooks the fact that the overwhelming majority of digital asset users are respectful of the law and trying to make our financial system better,” said Wyoming Senator Cynthia Lummis, a Bitcoin (BTC) HODLer who has taken a pro-crypto stance on many pieces of legislation. “We need thoughtful rules around stablecoins, and while I remain unconvinced of the need for a central bank digital currency, I will continue to closely monitor the Fed’s work in this area.”
The Crypto Council for Innovation, a coalition of crypto firms originally formed in April 2021 that includes major exchanges including Coinbase and Gemini, described the OE as a “holistic and informed” approach to cryptocurrencies. The group added that it would likely lead to regulatory clarity, responsible financial innovation and a more inclusive economy.
“We look forward to working collaboratively with regulators and policymakers in the coming months to develop smart policies that reinforce the United States’ position as a global leader in crypto innovation,” the CCI said. “Collaboration is crucial.”
President Biden has signed the EO recognizing the tremendous potential of crypto. It reflects the importance of crypto to the American people. We share the President’s commitment to responsible financial innovation and a more fair, inclusive economy. Full statement below. pic.twitter.com/GUINxBeBQG
— Crypto Council for Innovation (@crypto_council) March 9, 2022
President Biden has signed the EO that recognizes the tremendous potential of cryptocurrencies. It reflects the importance of cryptocurrencies to the American people. We share the President’s commitment to responsible financial innovation and a fairer and more inclusive economy.
Jeremy Allaire, co-founder and CEO of cryptocurrency payments firm Circle, added:
“For those of us in the cryptocurrency community, in my opinion, this EO should be seen as the biggest opportunity to engage with policymakers on the issues that matter. The proverbial doors of policymakers are OPEN, this is now a NATIONAL conversation in the United States”.
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