U.S. President Joe Biden signed an executive order on Wednesday to address a regulatory framework for cryptocurrencies.
Biden's 82nd executive order seeks a government oversight of digital assets that mandates the U.S. Federal Reserve to determine if the central bank can create its own digital currency, ABC News reported. It also urges a consolidated and coordinated policy for a regulatory mechanism to cover cryptocurrencies.
The executive order was reportedly planned for release in February, but Biden seemingly pushed it back due to the ongoing Russian invasion of Ukraine.
U.S. Crypto Industry Leaders, Lawmakers, Regulators Welcome Biden Move
U.S. industry leaders viewed the Biden executive order as a regulatory opportunity after reports suggested that Russia had been using cryptocurrencies to avoid U.S. sanctions, Cointelegraph noted in a report. Biden apparently would not waste time in issuing the order because of this.
The order detailed risks of evading sanctions, assertions similarly voiced by U.S. National Economics Council director Brian Deese and National Security Adviser Jake Sullivan. The order, they said, would strengthen U.S. leadership in the global financial system, while protecting the long-term efficacy of critical national security tools, such as sanctions and Anti-Money Laundering frameworks.
U.S. Treasury Secretary Janet Yellen said the order would push a "fairer, more inclusive, and more efficient financial system" while fighting "illicit finance and preventing risks to financial stability and national security."
Massachusetts Senator Elizabeth Warren emphasized that Biden was "right to spotlight crypto's risks", further saying that the U.S. government necessitated "strong rules before it was too late."
However, Wyoming Senator Cynthia Lummis, a Bitcoin HODLer, said that while she totally agrees with Biden's desire to fight money laundering and protect American interests, the EO "misses the fact" that a majority of cryptocurrency users are "law-abiding and trying to make our financial system better." Lummis added that there must be "thoughtful rules around stablecoins." The lawmaker stressed that even if she is unconvinced on the need for a central bank digital currency, she continues to "follow the Federal Reserve's work in this area closely."
Biden Executive Order Takes 'Holistic, Informed' Approach to Crypto
A coalition of crypto firms, the Crypto Council for Innovation, views the EO as taking a "holistic and informed approach" to cryptocurrencies that would likely lead to regulatory transparency, accountable innovation, and a more inclusive financial system.
The CCI, which includes top crypto exchanges Coinbase and Gemini, indicated that it was looking forward to partner with lawmakers and regulators to enact smart policies that strengthen America's stature as the worldwide leader in crypto technology.
The crypto coalition stressed that "collaboration is crucial" in this regard.
For his part, the CEO of crypto payments firm Circle Jeremy Allaire said that the EO must be considered as the "single best opportunity to engage with policymakers" on cryptocurrency. He said the "proverbial doors of policymakers are wide open," making cryptocurrency a "national conversation in the U.S."
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