” Ensure responsible development of digital assets This is the title of the first executive order signed by Joe Biden on March 9 on cryptocurrencies and a possible American central bank digital currency (MNBC). Well received by the sector, it aims to initiate reflection on its future regulation.
Coordinate the work of US agencies
Yes, the American authorities have been working for several years on cryptocurrencies and their regulation. However, this is the first time that the White House has intervened directly in the sector. the text accompanying the decree justifies it by the importance taken by digital assets, 3 trillion dollars in market capitalizations, 40 million Americans having manipulated cryptocurrencies in their lifetime and more than 100 countries exploring the possibility of creating a MNBC.
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The White House explains, The rise of digital assets creates an opportunity to strengthen American leadership in the global financial system and at the technology frontier, but also has substantial implications for consumer protection, financial stability, national security and climate risk. “.
Concretely, this decree requires a report from the various American agencies on cryptocurrencies. It was one of the requests of the latter, to coordinate their work on the subject. They now have 180 days to propose avenues for the development of American legislation in this area.
This work will focus on six areas of interest to the White House: consumer and investor protection, financial stability, illicit financing, American domination of the financial system, financial inclusion and innovation.
At the same time, the White House considers it urgent to explore the possibility of an American MNBC, ” if its broadcast is deemed to be of national interest “. The Federal Reserve has begun to study the issue and will include this issue in the report demanded by Joe Biden.
For its part, the Department of Justice will be responsible for specific communication on the subject. The Attorney General of the United States and his teams will have to assess whether new legislation is necessary and, if so, prepare the outlines.
Cryptocurrency Promoters Celebrate, Detractors Morose
Cryptocurrency advocates welcomed this text, the price of Bitcoin was affected when the decree leaked on the night of March 8 to 9. The industry appreciated mention of the positive aspects of cryptocurrencies, including financial inclusion and innovation.
On the night of March 8-9 the impending publication of Joe Biden’s executive order was revealed. Credit: Google
Faryar Shizad, head of public affairs at Coinbase, the largest US cryptocurrency exchange, said on Twitter that ” The White House appears to understand and embrace the transformative potential of digital asset technology and the importance of maintaining American leadership “. He said he looked forward to continuing to work with regulators and legislators.
Some reasons for optimism about President Biden’s Executive Order. The White House seems to understand and embrace the transformational potential of digital asset technology, and the importance of maintaining American leadership. Some thoughts: https://t.co/rgC7x8r1nX
—Faryar Shirzad (@faryarshirzad) March 9, 2022
Another advantage and not the least, the decree does not imply the adoption of long-term regulations. Cryptocurrency professionals waged an intense lobbying campaign in 2021 to defend their business. According to a report by Public Citizen, relayed by the wall street journalspending on cryptocurrency lobbying has increased from $2.2 million in 2018 to 9 million in 2021. The number of lobbyists has almost tripled.
Opponents of cryptocurrencies, at least supporters of strict regulations on the subject, may be disappointed. Joe Biden seems to have taken the side of caution and moderation. Putting in place a specific legislative framework could still take years.