President Joe Biden’s executive order has been released. The executive order went through delays because Biden tried to resolve the ongoing conflict in Ukraine. Now you may be wondering what’s in the executive order? Firstly, it includes a six-point strategy for the U.S. government regulating cryptocurrencies.
1. Investor protection
Investor protection has been of top importance. The Treasury was put in charge of assessing policy recommendations on crypto. In addition, regulators will need to provide enough control and protect against any systemic financial risks presented by digital assets.
2. Illegal Activities
This will be rooted out of the crypto industry. As a result of scams traders’ experience, Biden has called for an “unprecedented focus of coordinated action”. Therefore Biden’s executive order puts emphasis on government agencies to put a stop to illegal activity.
3. Financial Instability
Financial Instability is something very common in the crypto world. Therefore the volatility of the market has been a concern for several policymakers.
4. US competitiveness
The announcement focuses on giving the United States a competitive advantage over other countries when it comes to crypto development. Biden has called on the Department of Commerce to establish “a framework to drive US competitiveness and leadership in, and leveraging of digital asset technologies.”
5. Financial Inclusion
Crypto assets have drawn a line between people who are familiar with it against people who are not. Therefore, Biden’s executive order will help resolve this by encouraging financial inclusion.
6. Responsible innovation
Crypto-mining consumes lot of energy and as a result, it has caused concerns to the masses in regard to climate change. Bidens executive order will focus on reducing the negative effects of mining.
In addition, there has been talk about a US Digital Currency although Biden hasn’t made it clear whether the US will be coming out with their own. In conclusion, he put emphasis on the government to do their research on the potential development of a CBDC.