Biden’s executive order sends message: Crypto is here to say – The Average Joe

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    Biden’s executive order sends message: Crypto is here to say

    victorlei

    March 10, 2022

    crypto

    Yesterday, Biden signed an executive order on regulating crypto — sending crypto prices up.

    What’s the big deal? With 16% of adult Americans (~40M people) having invested or used crypto — urgency to regulate the industry is growing among lawmakers.

    This isn’t a regulatory framework — just an order for federal agencies to identify the risks and opportunities and create a roadmap to regulation by:

    • Directing the Treasury Department to create a “future of money” report — to assess the adequacy of the current financial system.
    • Taking a whole-of-government approach towards regulation — bringing together different government agencies.

    6 key priorities: Consumer and investor protection, financial stability, national security and illicit use, US leadership in the global financial system, financial inclusion and responsible innovation. As part of the order, lawmakers will:

    • Explore issuing its own central bank digital currency — if “deemed in the national interest”.
    • Work with international partners to “promote robust standards and a level playing field”.

    Implications: The crypto industry saw this as positive news — with Bitcoin rising 8% and Ethereum rising 5%. Many in the industry view this as a bullish signal for crypto:

    • This order affirms crypto is here to stay — per Brad Garlinghouse, CEO of Ripple.
    • Regulations pave a way for the US to remain a leader in crypto — per Cameron Winklevoss, co-founder of Gemini.

    Despite periods of uncertainty, regulations could provide a path to mass adoption — and draw in large institutional investors who were previously deterred by the lack of legal lines.

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