Joe Biden, the 46th President of the United States, signed an Executive Order on cryptocurrencies on March 9th, directing all federal agencies to coordinate a policy for digital assets.
The goal behind Biden’s executive order is to address important matters such as consumer protection and illicit activity, amongst other topics considered. With this initiative, the President summons the government to take a closer look at the risks and benefits of cryptocurrencies.
Divided into 10 sections, the text released and signed by Biden endorses the necessities of the fundamental topics as well as the urgent need to develop the government’s own digital asset (also known as CBDC).
Biden’s main crypto policy topics
Crypto enthusiasts and the media are highlighting six topics in the President’s executive order as subjects of vital importance:
They are consumer protection, financial stability, illicit activity, U.S. competitiveness, financial inclusion, and responsible innovation.
In the section about consumer protection, the President states that:
“We must protect the United States and global financial stability and mitigate systemic risk. Some digital asset trading platforms and service providers have grown rapidly in size and complexity and may not be subject to or in compliance with appropriate regulations or supervision”.
Biden emphasizes that “digital asset issuers, exchanges, and trading platforms and intermediaries whose activities may increase risks to financial stability should, as appropriate, be subject to and in compliance with regulatory and supervisory standards that govern traditional market infrastructures and financial firms, in line with the general principle of ‘same business, same risks, same rules.’”
Illicit activities related to crypto-assets were also highlighted as one of the main topics. According to Biden, those risks are considerable and include digital threats such as ransomware and cybercrime, as well as money laundering, narcotics, human trafficking, terrorism, and money laundering.
For that, Biden said that “the United States must ensure appropriate controls and accountability for current and future digital assets systems to promote high standards for transparency, privacy and security – including through regulatory, governance and technological measures – that counter illicit activity and preserve or enhance the efficacy of our national security tools”.
Regarding digital innovation, the North-American President stressed the importance of the United States being a leader in technological advancements.
“The United States has an interest in ensuring that digital asset technologies and the digital payments ecosystem are developed, designed and implemented in a responsible manner that includes privacy and security in their architecture, integrates features and controls that defend against illicit exploitation and reduces negative climate impacts and environmental pollution, as may result from some cryptocurrency mining”.
To read the full extent of the Executive Order, click here.
Repercussions on Biden’s text
The market received Biden’s decision with optimism and the rapid growth of Bitcoin this Wednesday portrays that.
According to Coin Metrics, BTC was trading at $42,284, about 9% higher. ETH and other crypto felt the effect as well.
For many, this position adopted by Joe Biden signals a promising future for cryptocurrencies around the world. The United States, evidently, represents a great and powerful force in the market in general worldwide.
Once the country regulates and takes a stand on the crypto matter, it could be a green light to other countries to feel also safe and more confident to do the same. Also, the future and possible regulations can be seen as examples of what is to come for other nationalities.