Joe Biden has signed his 82nd executive order since being sworn in in January 2021, which directly addresses the regulatory framework for digital assets at a rare time for the President of the United States.
In a statement on Wednesday, the White House said President Biden’s executive order required government agencies to examine the possibility of introducing a digital currency for the US Federal Reserve, and to coordinate and standardize policies within the country’s cryptocurrency framework. Several media outlets have previously reported that the US president originally planned to sign the executive order in February, but that incident will probably be delayed after Russia’s military operation in Ukraine.
The reaction of many industry leaders compared the executive order to the possibility of regulation – Biden rarely spoke directly about cryptocurrency and the blockchain during the presidency. Reports indicated that the situation that Russia could potentially use the digital currency to evade US sanctions may have contributed to the US president not waiting any longer. The executive order cited the dangers of circumventing sanctions three times, a sentiment repeated by National Economic Council Director Brian Dees and National Security Adviser Jake Sullivan:
«The approach outlined in E.O. strengthen US leadership in the global financial system and protect the long-term effectiveness of critical national security tools such as sanctions and mechanisms to combat money laundering. ”
President Biden will sign the Infrastructure Act in November 2021.
Lawmakers and regulators rushed to comply with the president’s order. Finance Minister Janet Yellen, who may have been premature in his statement on the matter, said the order could “result in significant benefits for the nation, consumers and businesses” in terms of supporting innovation while addressing industry risk. Elizabeth Warren, a Massachusetts senator who has often linked cryptocurrencies to illegal activities, said Biden was “right in highlighting the dangers of cryptocurrencies,” adding that the U.S. government needs “strong regulation before it is too late.” “.
“While I agree with the president’s desire to combat money laundering and protect US national security, I believe his executive order ignores the fact that the vast majority of digital asset users are law-abiding and trying to improve our financial system,” the senator said. Cynthia. so. Loomis, a Bitcoin (BTC) HODLer that has taken a pro-crypto position in many laws. “We need well-thought-out rules regarding stack coins, and although I am still not convinced of the need for a digital central bank currency, I will continue to follow closely the Fed’s work in this area.”
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The Cryptocurrency Innovation Council, an alliance of cryptocurrencies originally formed in April 2021 that includes major exchanges including Coinbase and Gemini, described the executive order as a “holistic and informed” approach to cryptocurrencies. The group added that this is likely to lead to regulatory clarity, responsible financial innovation and a more inclusive economy.
“We look forward to working with regulators and decision-makers in the coming months to develop sound guidelines that strengthen the United States’ position as a global leader in crypto-innovation,” CCI said. “Collaboration is critical.”
Jeremy Aller, co-founder and CEO of the payment company Circle for cryptocurrency, added:
“For those of us in the crypto-community, IMHO, this E.O. should be seen as the best opportunity to interact with politicians on important issues. The well-known doors for politicians are wide open, and now there is a national conversation in the United States.”