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Biden Signs Executive Order on Ensuring Responsible Innovation in Crypto

US Executive Order aims to capitalize on the opportunities provided by the crypto industry.

United States President, Mr. Joe Biden has signed a long-awaited Executive Order on cryptocurrencies.

This is the first-ever Government initiative towards addressing the risks and harnessing the potential benefits of digital assets.

According to a White House statement, “surveys suggest that around 16 percent of adult Americans – approximately 40 million people – have invested in, traded, or used cryptocurrencies.”

Government believes that digital assets present an opportunity to “reinforce American leadership in the global financial system.”

The same opportunity also presents risks for consumers, businesses, the broader financial system, and the climate.

The Order seeks to lay out a policy for digital across six key priorities: consumer and investor protection; financial stability; illicit finance; U.S. leadership in the global financial system and economic competitiveness; financial inclusion; and responsible innovation.

Aims of the Order:

Consumer, Investor, and Business protection

The Order decrees the Department of the Treasury and other agencies to develop policy recommendations to address the implications of the growing digital asset sector and changes in financial markets. It also encourages regulators to ensure sufficient oversight and safeguard against any systemic financial risks.

Protection of U.S. and Global Financial Stability 

The Financial Stability Oversight Council will identify and mitigate economy-wide (i.e., systemic) financial risks posed by digital assets and develop appropriate policy recommendations.

Mitigate the Illicit Finance and National Security Risks

The relevant U.S. Government agencies will work with allies and partners to ensure international frameworks, capabilities, and partnerships are aligned and responsive to risks.

Promote U.S. Leadership in Technology and Economic Competitiveness to Reinforce U.S. Leadership in the Global Financial System

The Department of Commerce is directed to drive U.S. competitiveness and leadership in, and leveraging digital asset technologies. This framework will promote research and development among agencies.

Promote Equal Access to Safe and Affordable Financial Services

The Secretary of the Treasury and all other relevant agencies will produce a report on the future of money and payment systems, including implications for economic growth, financial growth and inclusion, national security, and the assessment of the magnitude of the impact of technological innovation in future.

Support Technological Advances and Ensure Responsible Development

The US Government will be boosting innovation development, design, and implementation of digital asset systems while responsibly ensuring privacy, security, combating illicit exploitation, and reducing negative climate impacts.

Develop Central Bank Digital Currency (CBDC)

The Order directs the U.S. Government to assess and prepare the technological infrastructure for a CBDC. Federal Reserve is asked to continue its research, development, and assessment efforts for a U.S. CBDC. This effort also prioritizes U.S. participation in multi-country experimentation and ensures U.S. leadership internationally to promote CBDC development.

The United States is looking to dominate the crypto space. This Executive Order shows the stark contrast in the stance of the Government from being wary of crypto to seeing it as a global opportunity to be capitalized.

News recommendation: Opinion: Protests Against New Crypto Tax Seem Misinformed

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