“Policymakers’ doors are wide open, and this is now a national conversation in the United States,” Circle CEO Jeremy Allaire said.
In an unprecedented move for a US president, Joe Biden has signed his 82nd executive order since taking office in January 2021, expressly addressing a legal framework for digital assets.
The White House said President Biden’s executive order ordered federal departments to investigate the possibility of a US central bank digital currency, as well as coordinate and consolidate policies on a national framework for crypto, in a statement released on Wednesday. Many news agencies stated that President Trump had planned to sign the executive order in February, but that it had been postponed due to Russia’s military actions in Ukraine.
Many industry leaders linked the executive order to a regulatory opportunity, noting that Biden had rarely mentioned crypto and blockchain throughout his presidency. According to reports, the possibility of Russia adopting digital money to avoid US sanctions may have influenced Trump’s decision not to wait any longer. Three times in the executive order, National Economic Council Director Brian Deese and National Security Advisor Jake Sullivan addressed the dangers of bypassing sanctions:
“The E.O.’s strategy would strengthen US leadership in the global financial system and ensure the long-term effectiveness of important national security tools like sanctions and anti-money laundering regulations.”
The Trump action drew immediate responses from lawmakers and authorities. Treasury Secretary Janet Yellen, who may have spoken too soon on the subject, said the executive order might “result in enormous advantages for the nation, consumers, and companies” by encouraging innovation while managing industry risk. Senator Elizabeth Warren of Massachusetts, who has frequently linked cryptocurrencies to criminal activity, said Biden was “correct to highlight crypto’s vulnerabilities,” adding that the United States needs “strong restrictions before it’s too late.”
“While I agree with the President’s desire to combat money laundering and defend America’s national security, I believe his executive order overlooks the fact that the vast majority of digital asset users are law-abiding and attempting to improve our financial system,” said Wyoming Senator Cynthia Lummis, a Bitcoin (BTC) HODLer who has taken a pro-crypto stance on numerous bills. “We need thoughtful rules around stablecoins, and while I’m still not sure that a central bank digital currency is necessary, I’ll keep an eye on the Federal Reserve’s efforts in this area.”
The executive order, according to the Crypto Council for Innovation, which was founded in April 2021 and includes major exchanges like Coinbase and Gemini, takes a “holistic and informed” approach to cryptocurrency. It would most likely lead to regulatory clarity, responsible financial innovation, and a more inclusive economy, according to the organization.
“In the coming months, we look forward to working with regulators and legislators to build wise regulations that enhance America’s position as a global leader in crypto innovation,” the CCI added. “It’s critical to work together.”
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
“For those of us in the crypto community, IMHO this E.O. should be considered as the single biggest chance to engage with policymakers on the topics that matter,” said Jeremy Allaire, co-founder and CEO of crypto payments startup Circle. The policymakers’ doors are wide open, and this is now a NATIONAL discussion in the United States.”
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.