![]() ![]() Still, this effort signals that at the very least, Biden thinks crypto is a serious part of the US economy and that it might even have some potential. Many crypto advocates feared that the White House might try to suppress the industry, and Biden hasn’t said much about crypto (the president probably doesn’t own any bitcoin, either). Sam Bankman-Fried, the founder of the cryptocurrency exchange FTX, called Biden’s approach “ constructive.” Kathryn Haun, a former Andreessen Horowitz general partner who sits on the boards of Coinbase and the NFT platform OpenSea, said the order was “a step in the right direction.” Cryptocurrency prices also shot up in response to the news, which was leaked Tuesday night after the Treasury Department inadvertently shared a statement from Treasury Secretary Janet Yellen that called the order “historic.” As of Wednesday afternoon, bitcoin was up about 8 percent the day after news of the executive order broke - evidence that the order is popular among many crypto investors as well. “Continued United States leadership in the global financial system will sustain United States financial power and promote United States economic interests.”įor crypto companies, the positives outlined by Biden outweigh the negatives. “We must reinforce United States leadership in the global financial system and in technological and economic competitiveness, including through the responsible development of payment innovations and digital assets,” said Biden in the order. While a digital dollar wouldn’t be quite as volatile as bitcoin is, the logistics of using it would likely be similar: Like crypto, a government-backed digital coin would probably involve a ledger and digital wallets. This nascent but controversial plan would have a central bank, like the Federal Reserve, issue a digital currency that’s pegged to the US dollar some call it the digital dollar. ![]() Biden even encouraged the government to continue studying a proposal to create a digital currency of its own. The order also directs the government to support technological advances that would jumpstart the use of crypto and digital assets with privacy and security in mind. The Commerce Department will investigate how cryptocurrencies might boost US competitiveness in the global economy. Biden has also ordered the federal government to analyze what impact crypto - which requires an enormous amount of energy to produce - might have on the climate.īut the White House seems to think crypto could do some good, too. Meanwhile, the attorney general, the Secretary of the Treasury, and the Department of Homeland Security will come up with a national strategy to combat crimes facilitated with cryptocurrency. The Financial Stability Oversight Council, a government organization that studies the US financial system, will evaluate what kind of threat crypto poses to the overall economy. The Treasury Department will come up with ideas for ways to protect investors and consumers from the financial risks that come with crypto, which can be more volatile than other types of assets. “The message I take from this is that the federal government sees cryptocurrency as a legitimate, serious, and important part of the economy and society, and I think it’s a good signal to serious people who’ve been holding back from getting involved,” Jerry Brito, executive director of the DC-based crypto think tank Coin Center, said in a tweet.īiden’s executive order is focused on updating US financial regulations to address cryptocurrency, specifically by instructing federal agencies to study crypto and propose new rules to regulate it. Despite the government’s plans to explore some of crypto’s most contentious issues - and the many open questions about crypto’s future in the US - the fact that the White House is giving bitcoin and other cryptocurrencies some real recognition is cause for many crypto advocates to celebrate. As part of this effort, Biden has ordered federal agencies to dig into many of the problems that crypto created as it became more mainstream, including its role in money laundering and terrorist groups. The executive order doesn’t change how the US approaches crypto in the immediate future, but it will start the process of creating regulations for digital currencies. In fact, a lot of people with crypto are even happy about the new order, so much so the price of bitcoin is going up. While the order is the first major attempt to bring the government together around regulating crypto, it’s not quite the crackdown some expected from an administration that has spent months warning about impending oversight. ![]() President Joe Biden’s long-awaited executive order about cryptocurrency is finally here. ![]()
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