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