Joe Biden has signed his 82nd executive order since taking office in January 2021: he directly addresses a regulatory framework for digital assets, a rare moment for the president of the United States.
This week, President Biden issued an executive order requiring government agencies to explore the possibilities of a potential US central bank digital currency launch, as well as coordinate and consolidate a national policy framework for cryptocurrencies. Many media outlets had previously reported that the US president was planning to sign the executive order in February , an event that was likely postponed following Russia’s military actions in Ukraine.
The reaction from many industry leaders has likened the executive order to a regulatory opportunity, as Biden rarely spoke directly about cypto and blockchain during his presidency. Reports have suggested that the situation with Russia – potentially using digital assets to evade US sanctions – may have put pressure on the US government to do so.
Indeed, the executive order mentions the risk of circumventing sanctions three times. A point of view taken up by the director of the National Economic Council Brian Deese and the National Security Advisor, Jake Sullivan :
“The approach outlined in the OE will strengthen US leadership in the global financial system and safeguard the long-term effectiveness of strategic national security tools such as sanctions and anti-money laundering regulations.”
Regulators quickly expressed their views on the executive order. Treasury Secretary Janet Yellen said the new law could ” bring substantial benefits to the nation, consumers and businesses ” in supporting innovation, while addressing the risks of the crypto sector. Massachusetts Senator Elizabeth Warren, who has often associated digital assets with malpractice, said Biden has ” reason to highlight the risks of cryptocurrencies ,” adding that the US government needs ” strong rules before it’s too late . “
Cynthia Lummis, Senator from Wyoming and Bitcoin’s HODLer of (BTC), said:
“While I agree with the president’s desire to fight money laundering and defend America’s national security, I think there is a hint in his executive order that the vast majority of digital asset users are respectful of the he reads and tries to make our financial system better.
We need thoughtful rules on stablecoins. While I remain unconvinced about the need for a central bank digital currency, I will continue to closely monitor the work of the Federal Reserve on this issue. “
The Crypto Council for Innovation – a coalition of crypto firms originally formed in April 2021, which includes major exchanges including Coinbase and Gemini – said the executive order presents a ” holistic and informed ” approach to cryptocurrencies. The group added that it is likely to lead to greater regulatory clarity, responsible financial innovation and a more inclusive economy.
” We look forward to working collaboratively with regulators and policy makers to develop smart policies that strengthen America’s position as a global leader in crypto innovation, ” the ICC said. ” Collaboration is essential “.
“President Biden signed the OE recognizing the enormous potential of cryptocurrencies. It reflects the importance of crypto to the American people. We share the president’s commitment to responsible financial innovation and a more equitable and inclusive economy. Statement. complete below. “
President Biden has signed the EO recognizing the tremendous potential of crypto. It reflects the importance of crypto to the American people. We share the President’s commitment to responsible financial innovation and a more fair, inclusive economy. Full statement below. pic.twitter.com/GUINxBeBQG
— Crypto Council for Innovation (@crypto_council) March 9, 2022
Jeremy Allaire, co-founder and CEO of the crypto payments firm Circle, added :
“For us in the crypto community, this OE should be seen as the greatest opportunity to engage with policy makers on the issues that matter. The proverbial doors of politics are OPEN, this is now a NATIONAL issue in the United States.”