On March 9, 2022, President Joe Biden signed an executive order for the government to take an in-depth look at cryptocurrency. Something that has been long-awaited by those championing cryptocurrency, it’s possible that this could be the first step towards regulation. That said, it can be a bit confusing as to what this all means exactly. Let’s take a deeper look at what Biden’s cryptocurrency executive order actually does.
What does Biden's cryptocurrency executive order actually do?
Joe Biden’s cryptocurrency executive order will help the government assess the crypto market and come up with policies around cryptocurrency. The White House shared a fact sheet that highlights the points of emphasis for the review:
- Protect U.S. Consumers, Investors, and Businesses: The order urges regulators to “ensure sufficient oversight and safeguard against any systemic financial risks posed by digital assets.” It’s no secret that the crypto space is rich with scams, rug-pulls, and bad actors.
- Protect U.S. and Global Financial Stability and Mitigate Systemic Risk: The review will include identifying any potential “financial risks posed by digital assets,” so that regulatory gaps can be properly addressed.
- Mitigate the Illicit Finance and National Security Risks Posed by the Illicit Use of Digital Assets: The order calls for a coordinated across government agencies to reduce risks. It also “directs agencies to work with our allies and partners to ensure international frameworks, capabilities, and partnerships are aligned and responsive to risks.”
- Promote U.S. Leadership in Technology and Economic Competitiveness to Reinforce U.S. Leadership in the Global Financial System: To “create a foundation for agencies and integrate this as a priority into their policy, research and development, and operational approaches to digital assets.” The White House hopes that this will make the United States a leader in digital assets and technology.
- Promote Equitable Access to Safe and Affordable Financial Services: The order mentions the need to make cryptocurrency accessible to as many people as possible. The White House says this is “especially important for communities that have long had insufficient access to financial services.”
- Support Technological Advances and Ensure Responsible Development and Use of Digital Assets: Biden’s order directly addresses concerns about crypto’s impact on the environment. It emphasizes the importance to “study and support technological advances in the responsible development, design, and implementation of digital asset systems while prioritizing privacy, security, combating illicit exploitation, and reducing negative climate impacts.”
- Explore a U.S. Central Bank Digital Currency (CBDC): Perhaps the most interesting part of the fact sheet, the White House is actively exploring the creation of a Central Bank digital Currency. Government agencies have been ordered to “assess the technological infrastructure and capacity needs for a potential U.S. CBDC in a manner that protects Americans’ interests.”
Those are the primary points of emphasis from President Joe Biden’s executive order surrounding cryptocurrency. There will likely be more updates to the situation as the review goes on, which you can expect to read about right here on Shacknews.