Joe Biden rolls out Official Crypto-Executive Order as Bitcoin soars

Sahana Kiran
Source – Pixabay

A leaked press release from the US Treasury’s office created quite the buzz in the crypto market. Janet Yellen, the Treasury Secretary noted that the government was curating reports to probe the prospects of crypto and other digital currencies in the market. Now, hours after the press release was taken down, the White House published a Fact Sheet that entailed the details of the Executive Order that was signed by President Joe Biden.

The emergence of crypto was one of the many things highlighted in the Executive Order. It was noted that about 16 percent of adult Americans were invested in crypto. This was a massive uptrend since five years ago. Therefore, paying heed to these numbers and the ever surging demand for crypto, the government decided to take a look into the crypto-verse.

The order focuses on six major areas. This included consumer and investor protection; financial stability; illicit finance; U.S. leadership in the global financial system and economic competitiveness; financial inclusion; and responsible innovation.

The Treasury and other agencies will reportedly work together to protect the consumers, investors as well as businesses in the country. Regulators from all over the country would require to safeguard citizens against any “systemic financial risks posed by digital assets.”

Despite the growth rate of crypto, governments across the globe still believe that these assets could disrupt the economic stability of the world. As a result, the Financial Stability Oversight Council would be put to work to monitor and negate economy-wide financial risks.

Will the government now have its eyes on crypto?

Time and again, regulators have expressed fear of crypto being used as a tool for illicit activities. Adhering to this fear, the order urged the government to mitigate risks by,

“directing an unprecedented focus of coordinated action across all relevant U.S. Government agencies to mitigate these risks. It also directs agencies to work with our allies and partners to ensure international frameworks, capabilities, and partnerships are aligned and responsive to risks.”

Additionally, the Department of Commerce will work closely with the government to aid in elevating digital asset technologies.

Several reports pertaining to the future of money, payments systems, implications for economic growth, financial growth, national security, and similar technological innovations.

Central Bank Digital Currency [CBDC] to emerge as a priority this year

China is well ahead in the CBDC game. The country managed to roll out its very own CBDC while other countries are still in the research and development stage. Now, the Executive Order urged urgency on the research and development of the United States CBDC.

Further elaborating on the prioritization of CBDCs, the order read,

The Order directs the U.S. Government to assess the technological infrastructure and capacity needs for a potential U.S. CBDC in a manner that protects Americans’ interests. The Order also encourages the Federal Reserve to continue its research, development, and assessment efforts for a U.S. CBDC, including the development of a plan for broader U.S. Government action in support of their work.”

Following this, the price of the largest crypto, Bitcoin [BTC], shot by about 8 percent pushing its price to $42k.