US President Joe Biden's executive order on crypto is finally out. It is the first comprehensive regulation in the cryptocurrency business in the United States (US), which has been consecutively coming on top of the list of countries mining Bitcoin over the past few years.
The White House announced the order last night under the heading “Executive Order on Ensuring Responsible Development of Digital Assets.”
The regulation is a six-point strategy for regulating digital assets, which was expected to be out in February but was put on hold as Biden and his administration attempted to resolve the Ukraine conflict.
The executive order defines six critical priorities for the US government's crypto strategy going forward. They are as follows:-
1. Investor protection
Consumer protection has been highlighted as of prime importance in Biden’s executive order. The Biden administration has called on the US Treasury to recommend policies on crypto to protect investors.
2. Illegal activities
The anonymity crypto provides has led to several criminal activities including money laundering using it. The Biden administration seeks to curb this menace via the order. The US president has called for an “unprecedented focus of coordinated action” from all governmental agencies in curbing the illegal activities linked to crypto.
3. Financial stability
Crypto is well known for the volatility in its markets. This has been a cause of concern for many policymakers.
4. US competitiveness
Part of the language in the White House announcement focuses on giving the US. a competitive edge over other countries when it comes to crypto development. Biden has tasked the Department of Commerce with “establishing a framework to drive US competitiveness and leadership in, and leveraging of digital asset technologies.”
5. Financial inclusion
Crypto assets like cryptocurrencies, NFTs, etc have caused a divide between the people who are well aware of the technology and those who are not. The executive order by US president Biden aims at “promoting Financial inclusion”
6. Responsible innovation
It is a well-known fact that crypto mining, especially Bitcoin consumes a lot of energy and is a cause of concern when it comes to climate change. Biden wants the government to study ways to make crypto innovation more “responsible,” reducing any negative climate impacts.
The directive puts forth a proposal for the United States to develop its own digital currency (CBDC - US Central Bank Digital Currency). Biden has called on the government to place “urgency” on the research and development of a potential US CBDC.
Another provision of the order delegates authority to a panel comprising representatives from multiple financial institutions, including the United States Securities and Exchange Commission (SEC) and the Federal Trade Commission (FTC) (FTC). The purpose of this research is to educate leaders about the widespread use of digital assets and the hazards they bring to investors.
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