The Biden White House on Wednesday unveiled a new executive order to regulate cryptocurrencies. The order essentially lays out a comprehensive strategy for how the government plans to balance consumer protection while ensuring that the United States remains a place for innovation in this area.
For those concerned about the government’s aggressive intervention in the crypto sector, the wording of the order indicates that the Biden White House is not interested in sweeping reforms in the short term and is instead only focused on keeping officials on the same wavelength. Studying and observing the implications of the crypto industry for national security.
“The proliferation of digital assets creates an opportunity to reinforce US leadership in the global financial system and at the technological frontier, but also has significant implications for consumer protection, financial stability, national security, and climate risks,” according to a white paper published by White. Houses.
The press release elaborates on the seven main goals for implementing the decree.
- Protect American consumers, investors and businesses
- Protect US and global financial stability and mitigate systemic risk
- Reduce illegal financial and national security risks associated with the illegal use of digital assets.
- Promoting US leadership in technology and economic competitiveness to strengthen US leadership in the global financial system.
- Promote equitable access to safe and affordable financial services
- Support technological progress and ensure the responsible development and use of digital assets
- Explore digital currency from the US Central Bank (CBDC)
While crypto investors can usually breathe a sigh of relief, fellow lawmakers like Elizabeth Warren, who have been highly critical of the crypto space, may be less pleased. In recent months, Warren has been critical of the industry, noting the environmental impact of cryptocurrencies and the risks for investors associated with lax regulation of so-called stablecoin issuers and other players in the DeFi ecosystem.
White House communications regarding EO do not specifically mention specific coins or projects, except for Bitcoin price fluctuations. There was also no mention of specific industries such as DeFi or NFT.
Of particular concern to some in the crypto industry was that the potential use of crypto by the wealthy Russian elite to evade sanctions could lead to action, but during a background press conference, an unnamed senior official downplayed the possibility. in relation to Russia, in particular, the use of cryptocurrencies, which, in our opinion, is not a viable solution to the series of financial sanctions that we have imposed on the entire Russian economy and on the central bank in particular.
The focus of the order is directing several government agencies to formally begin exploring the development of a state-backed cryptocurrency, the U.S. Central Bank Digital Currency (CBDC). “This study, and the framework that needs to be developed for international participation and competitiveness, will ensure that we maintain the key role that the United States plays in the global financial system,” a senior White House official said.
The White House says President Biden will sign the executive order today.