You may have heard or read about U.S. President Joe Biden’s recent executive order on digital assets, and you may be wondering what it means or all the reasons why it matters and is a big deal. Those who advocate for cryptocurrency are excited about it, while those who prefer increased regulation are likely skeptical.
It’s the first order of its kind to concentrate solely on the growing digital asset sector. It’s important to know why Biden’s crypto executive order is important news and what it means for the industry and the digital asset industry.
Executive Order on Cryptocurrencies
President Biden recently signed an order directing federal agencies to coordinate their approach to the sector. It doesn’t impose any new regulations on the industry or outline exact positions the administration wants agencies to take on. What came of the order is that it requires federal agencies to work together and align their efforts in drafting cryptocurrency regulations.
“We must support technological advances that promote responsible development and use of digital assets,” the president said.
According to a fact sheet associated with the order, the government’s attempt to regulate the crypto industry focuses on consumer protection, financial stability, illicit uses, leadership in the global financial sector, and financial inclusion and responsible innovation.
What it Means for the Digital Asset Sector
Biden’s order is significant news because it’s the first of its kind that focuses entirely on growing the digital asset sector. While no specific positions are laid out, the order does direct federal agencies to do a better job of communicating their work within the sector. Cryptocurrency agencies were also not directed to follow or abide by any new regulations either.
Some are worried and concerned that the growth of the cryptocurrency sector may impose threats and harm to the U.S. financial system or even national security. For instance, criminals have been known to evade sanctions or launder funds.
However, you must also consider the idea that it’s a chance for the digital asset sector and companies to promote financial inclusion and increase competitiveness and innovation in America. It may give the US a competitive edge on the global scale by being able to create jobs and opportunities for workers as well as build new industries.
The president has essentially called for an “unprecedented focus of coordinated action” from federal agencies in diminishing illicit finance and national security risks that cryptocurrencies can bring about. A fact sheet that was shared with reporters outlines the priorities that the order is set to concentrate on and function around. The six key priorities that the new order will define and focus on include:
- Protecting U.S. interests
- Protecting global financial stability
- Preventing illicit uses
- Promoting “responsible innovation”
- Financial inclusion and U.S. leadership
The price of Bitcoin rose significantly after President Biden’s order. Per CNBC, Bitcoin’s price rose 8% after the order was announced.
This is all good information to think about and digest if you’re interested in investing in crypto, Bitcoin, or NFTs. The assumption is that President Biden’s executive order will drum up additional scrutiny to the sector and industry. It’ll not only increase the level of trust but should also help with the public adoption of DeFi.
Here at Mawson Infrastructure Group, we aim to bridge the gap between the rapidly emerging Digital Asset Industry and Traditional Capital Markets. We encourage you to get in touch with us for more information about our digital mining, infrastructure and hosting, and digital asset management services.