President Joe Biden will soon sign a crypto-related executive order that will authorize all-government efforts to manage further regulations. While the document doesn’t state any restrictive measures, it can definitely become the groundwork for a more focused federal response.
The Long-Awaited Order Isn’t A Regulatory Clampdown
As Joe Biden prepares to sign a long-awaited cryptocurrency bill, many realize that it’s not a regulatory clampdown on the industry. Instead, the document’s language is favorable, with the key focus on coordination and consolidation of various agencies in the field.
The order states six different areas where the federal government will engage with the digital currency ecosystem. These include consumer and investor protection, financial stability, financial inclusion, responsible innovation, the US global financial leadership, and dealing with illicit activity.
Furthermore, the Department of Treasury will take the lead in creating policy recommendations for mitigating systemic and consumer risks related to digital assets.
Besides setting the framework for dealing with risks, the document also expands on the potential of digital assets and how it can expand the accessibility of financial services and contribute to maintaining the US leadership in the global financial system.
The order also directs the Treasury to make a report on the future of money and payment systems and encourage the Federal Reserve to start the research on the central bank digital currency.