Biden Signs Widely Anticipated Executive Order Regulating Digital Assets 14

Biden Signs Widely Anticipated Executive Order Regulating Digital Assets

  • US President Joe Biden has finally signed the much-awaited executive order regulating digital assets
  • The order emphasizes six different financial areas including curbing illicit usage of digital assets
  • The order also advises authorities to bolster efforts towards launching a CBDC.

US President Joe Biden has finally issued an executive order that intends to regulate digital assets such as cryptocurrencies in the region. 

The order directs federal agencies to coordinate their approach towards the sector and focus on prioritizing consumer protection, financial stability as well as putting a lid on illicit uses of cryptocurrencies. 

Biden Signs One Of Its Kind Executive Order Regulating Digital Assets.

The fact sheet accompanying the order further denotes the key areas that the government will be focusing on. The areas such as the global financial sector, financial institutions, illicit uses of leadership in the global finance sector, consumer protection, and financial stability were greatly emphasized, according to CoinDesk 

The executive order also directs federal authorities to work on the emerging digital asset sector and advises authorities to establish better communication with the sector. However, the order does not mention specific ways or structures that the government wants the authorities to adopt. 

The order also lays equal emphasis on the US government’s efforts to curb the illicit usage of digital assets. To combat such issues, the order directs government agencies to work with allies and partners to ensure the” international frameworks, capabilities, and partnerships are aligned and responsive to risks.”

Moreover, the executive order directs the Department of Commerce to leverage digital asset technologies and establish a framework to steer US competitiveness and leadership. 

“Promote U.S. Leadership in Technology and Economic Competitiveness to Reinforce U.S. Leadership in the Global Financial System by directing the Department of Commerce to work across the U.S. Government in establishing a framework to drive U.S. competitiveness and leadership in, and leveraging of digital asset technologies. This framework will serve as a foundation for agencies and integrate this as a priority into their policy, research and development, and operational approaches to digital assets.” 

The order also states that the Secretary Of The Treasury should produce “reports on the future of money and payment systems, to include implications for economic growth, financial growth and inclusion, national security, and the extent to which technological innovation may influence that future.” 

The Biden administration was previously exploring launching a CBDC to bolster its economic prospects. The current order facilitates a clause that states that the US government should “assess the technological infrastructure and capacity needs for a potential U.S. CBDC in a manner that protects Americans’ interests. The Order also encourages the Federal Reserve to continue its research, development, and assessment efforts for a U.S. CBDC, including the development of a plan for broader U.S. Government action in support of their work.”

The order has so far managed to draw positive reactions from investors. Many crypto enthusiasts on social media are of the view that the bill may finally help digital assets gain wider coverage. 

Jeremy Allaire, CEO, and Founder of Circle Pay, also commented on the executive order, calling it ” a watershed moment for crypto, digital assets and Web3 akin to the 1996/1997 whole government wakeup to the commercial internet”. He sees it as rewarding that the White House addresses the sector with such great emphasis and detail.