President Joe Biden’s Long-awaited Executive Order on Cryptocurrencies finally here. While the order is the first great attempt to bring government together around crypto regulation, it is not quite the crackdown some would expect from a competent regulator. spent months warning of impending surveillance. In fact, a lot of crypto users are even satisfied with the new order, a lot Bitcoin price is rising.
The executive order does not change the way the United States approaches cryptocurrencies in the immediate future, but it will begin the process of creating regulations for digital currencies. As part of this effort, Biden ordered federal agencies to dig into the many problems that cryptocurrency has created as it become more popularincluding its role in money laundering and terrorist group. While the government plans to explore some of crypto’s most controversial issues – and many open questions about the future of crypto in the US – the White House’s recognition of bitcoin and other cryptocurrencies is what causes many crypto advocates to celebrate.
“The message I take from this [executive order] is that the federal government considers cryptocurrencies a legitimate, serious, and important part of the economy and society, and I think that’s a good sign for the serious people who haven’t gotten into it. ,” said Jerry Brito, executive director of the Center Coin think tank DC-based cryptocurrency, said in a tweet.
Biden’s executive order focuses on updating US financial regulations to tackle cryptocurrencies, specifically by instructing federal agencies to study cryptocurrencies and recommending rules. new to adjust it. The Treasury Department will come up with ideas for way to protect investors and consumers from the financial risks that come with cryptocurrencies, can more volatile than other asset classes.
The Financial Stability Oversight Council, a government organization that studies the US financial system, will assess what kind of threat cryptocurrencies pose to overall economy. Meanwhile, the Attorney General, Treasury Secretary, and Department of Homeland Security will devise a national strategy to combat crypto-facilitated crime. Biden has also ordered the federal government to analyze the impact of cryptocurrencies, which require enormous amounts of energy to produce. possible about climate.
But the White House also seems to think that crypto can do some good, too. The Commerce Department will investigate how cryptocurrencies can boost the competitiveness of the United States in the global economy. The order is also command government to support technological advancements will start using cryptocurrencies and digital assets with privacy and security in mind. Biden even encouraged the government to continue working on a proposal to create a digital currency of its own. This is young but controversial plan there will be a central bank, like the Federal Reserve, that issues a digital currency pegged to the US dollar; some call it digital dollars. While the digital dollar won’t be as volatile as bitcoin, the logistics of using it will likely be similar: Like cryptocurrency, a government-backed digital currency will likely regarding ledgers and digital wallets.
“We must strengthen U.S. leadership in the global financial system and technological and economic competitiveness, including through the responsible development of payments and asset innovations.” digital,” Biden said Order. “Continued U.S. leadership in the global financial system will maintain U.S. financial strength and advance U.S. economic interests.”
For crypto companies, the positives Biden raised outweigh the negatives. Sam Bankman-Fried, founder of crypto exchange FTX, called Biden’s approach “constructive. ” Kathryn Haun, former general partner of Andreessen Horowitz who sits on the board of Coinbase and NFT platform OpenSea, speak order is “a step in the right direction.” Cryptocurrency prices also spiked following the news, which was revealed on Tuesday night after the Ministry of Finance accidentally shared a statement from Treasury Secretary Janet Yellen called the order “historic”. As of Wednesday afternoon, bitcoin was up about 8% a day after news of the executive order broke — proof that the order is also popular among many crypto investors.
This enthusiastic response makes sense. Many crypto advocates fear that the White House may try to crack down on the industry, and Biden hasn’t talked much about crypto (presumably the president do not own any bitcoins). However, the effort signals that Biden, at the very least, thinks that cryptocurrency is an important part of the US economy, and that it may even have some potential. And because the government plans to evolve its new regulations over time, the White House is also creating an opportunity for a growing number of crypto-oriented advocacy organizations and advocacy groups. corridor in Washington. affect How the new rules work.
Not everyone is happy about Biden’s more welcoming stance on crypto. Some believe that the government shouldn’t get involved in crypto regulation and Biden might end up being technology hindrance. In contrast, critics who argue that the crypto industry is rife with fraud, scams, and criminal activity are arguing for stricter regulations for cryptocurrencies, not their adoption. more widely.
“In the lead up to this executive order, the narrative that has been circulating is that the authorities are set up to crack down on cryptocurrencies,” said Lee Reiners, executive director of Duke law school’s Center for Global Financial Markets, told the Wall Street Journal. “This executive order is a complete 180 words there.”
However, it is still too early to say whether the federal government will fully accept cryptocurrencies. After all, we don’t know what these new rules will ultimately say or whether they will ultimately support or prevent the use of cryptocurrencies in the US. What we do know is that Biden seems intent on taking a mid-way approach, one that acknowledges that cryptocurrency is no longer a niche technology but a growing part of the average person’s finances. American. And it won’t go away anytime soon.
https://www.vox.com/recode/22969662/crypto-bitcoin-biden-new-executive-order Joe Biden’s New Cryptocurrency Executive Order Explained