President Biden finally signed the crypto-executive order whcih seeks to establish a strategy to regulate the crypto industry so let’s read more in today’s latest cryptocurrency news.
President Biden finally signed the crypto executive order on Ensuring Responsible Development of Digital Assets which is a first-of-its-kind order and approach to regulating the crypto industry with goals to target various issues within the crypto space like consumer protection, financial inclusion, and illicit finance. The executive order reads:
“Growing development and adoption of digital assets and related innovations, as well as inconsistent controls to defend against certain key risks, necessitate an evolution and alignment of the United States Government approach to digital assets.”
1/ Russia can't & won't use crypto to evade sanctions.
Concerns about crypto's use for sanctions evasion are totally unfounded. They fundamentally misunderstand:
– how sanctions work
– how crypto markets work
– how Putin is actually trying to mitigate sanctions
— Jake Chervinsky (@jchervinsky) March 1, 2022
Today’s executive order doesn’t introduce new regulations or provide regulatory agencies with the administration’s position on what regulations ought to adopt. The order asks for federal agencies like the Federal Trade Commission, the SEC, and the CfTC to coordinate their efforts with respect to the oversight of the crypto industry and calls for the Treasury Department to produce reports on the future of money and payment systems.
President Biden’s crypto executive order is broken down into 10 sections objectives, policy, central bank digital currencies, coordination, financial stability, international cooperations, and general provisions. Under the second section “Objectives” the executive order laid out six key objective aims of the government which it pertains to as digital assets. Front and Center is the need to protect the investors, consumers, and busienss in the US. The executive order reads echoed similar warnings made by SEC Chairman Gary Gensler:
“The unique and varied features of digital assets can pose significant financial risks to consumers, investors, and businesses if appropriate protections are not in place.”
Biden’s order lists a few illicit finance risks associated with cryptos like money laundering, ransomware, cybercrime, narcotics, and human trafficking. The crypto industry was under scrutiny amid fears that Russia can use crypto to avoid economic sanctions. The order also commits the US to reinforce the leadership in technology and promote access to safer financial services and support responsible development. In a statement published by Treasury Secretary Janet Yellen:
“This approach will support responsible innovation that could result in substantial benefits for the nation, consumers, and businesses.”
In 180 days of the order, Biden instructed multiple leading authorities to submit reports that will examine the potential of the technologies to impede the efforts to tackle climate change as well.