American President Joe Biden’s long-awaited directive regarding cryptocurrency is now available. While it is the first significant effort to bring the government in a common position on regulating crypto, it is far from the kind of crackdown that people expected from an administration warning for months about the impending surveillance. Many crypto users are happy with the new regulation; therefore, the bitcoin price increases.
The White House is giving bitcoin and other currencies some profound acceptance is a reason for many crypto enthusiasts to rejoice. The executive order does not alter how the US approaches crypto in the near term, but it will begin developing rules regarding digital currencies. In this process, Joe Biden had ordered federal agencies to study various issues cryptocurrency brought about when it became more popular and was involved in facilitating money laundering and terrorist organizations. Despite plans by the federal government to check some of the crypto currency’s most controversial issues and the numerous unanswered questions regarding the future of crypto in the US.
Jerry Brito, executive director of Coin Center, tweeted the message, “The message I got from this executive order is that our federal government views cryptocurrency as a legitimate, serious and vital element of our society and economy. I believe that it is a great signal to people who are serious and have been hesitant to get involved,” Jerry Brito, the executive director of Coin Center, a think tank based in DC Coin Center, said in an email.
The attorney general, Secretary of the Treasury, and the Department of Homeland Security will develop an overall strategy for tackling the criminals made possible by cryptocurrency. The Financial Stability Oversight Council, an organization of the government that analyzes how to improve the US financial system, is set to examine the kind of threat that cryptocurrency could pose to the entire economy. Biden has also directed the United States government to look into the effects of cryptocurrency -which requires a massive amount of energy- could impact the environment.
Biden’s executive order aims to change the US financial rules to tackle cryptocurrency. It specifically instructs federal agencies to research cryptocurrency and develop new rules for regulating it. It is expected that the Treasury Department will come up with suggestions for ways to shield consumers and investors from the risks to their finances associated with crypto as it is much more volatile than the other kinds of assets.
However, there is a sense that the White House seems to think that cryptocurrency could be beneficial as well. The Commerce Department will investigate how cryptocurrency could improve US competition in the world market. The order also requires the government to encourage technological advancements that will help accelerate the use of cryptocurrency and digital assets, keeping security and privacy in mind.
President Joe Biden also urged the government to keep studying the possibility of creating an online currency that is it’s own. The idea, which is still in the early stages but has been criticized, will see an official central bank, similar to its counterpart, the Federal Reserve, issue a digital currency tied to the US dollar. Some call it digital currency. Although a digital currency would not be as volatile as bitcoin, the mechanics of its use would be the same as crypto. A digital government-backed coin could require digital wallets and a ledger like crypto.
Joe Biden states, “We need to strengthen United States leadership in the global financial system, as well as in economic and technological competitiveness, including through the development of responsible digital assets and payment innovation.” He also said, “Continued US leadership in the global market will strengthen United States financial power and help to promote United States economic interests.”
For crypto-related companies, the positives highlighted by President Biden overshadow the negatives. CEO of the bitcoin exchange FTX, Sam Bankman-Fried, described Biden’s approach as “helpful.” The order was “a step in the right direction,” according to Kathryn Haun, who was Andreessen Horowitz’s general partner. The news leaked on Tuesday night as the Treasury Department unintentionally shared a statement from Treasury Secretary Janet Yellen calling the decision “historic.” Cryptocurrency prices also rose in response to the news. Bitcoin went up approximately 8% on Wednesday afternoon.
This enthusiastic response is logical. Many crypto enthusiasts worried about the possibility that Biden’s White House might try to restrict the market as well, and Joe Biden has not made any pronouncements on cryptocurrency. However, this move suggests that, at a minimum, Biden thinks crypto is an essential aspect of the United States economy and may even have some merit. Since the government plans to create new regulations over time, the White House also allows the ever-growing number of crypto-focused advocacy groups and lobbying organizations in Washington to influence how the new rules work.
Some people are unhappy with Joe Biden’s more tolerant stance on cryptocurrency. Some people believe that the government should not be involved in cryptocurrency regulation, and they think that Biden may continue to impede the technology. However, peoples who think the crypto business is replete with fraud, scams, and criminal activities, on the other hand, argue for stricter cryptocurrency controls rather than broader acceptance.
However, it is too early to determine if the federal government will accept cryptocurrency. In the end, we do not know what these new regulations will mean or whether they will eventually allow or hinder the use of crypto across the United States. We know that Joe Biden is likely to adopt an approach that is middle of the road, acknowledging that crypto is no longer a niche technology and is now a significant element of every American’s budget. It is not going away any time shortly.
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Steven Burnett has over 15 years of experience in a range of industries and domains. Steven has a flair for gathering data and information through extensive research efforts, and has a strong set of skills to cover almost any domain with ease and produce reports that are easy to understand and aid in making well-informed decisions. You can get in touch with him here. Phone No: +1 315-447-6937 Email: steven.b@coinlaw.io
