The details of the cryptocurrency executive order were approved by the White House
The White House on Wednesday approved the details of Joe Biden’s executive order on digital assets.
Digital assets, including cryptocurrencies, have grown significantly in recent years, with a market value exceeding $ 3 trillion in November last year, according to The White House. This is despite the fact that the market value of cryptocurrencies five years ago was only $ 14 billion. Today we see President Joe Biden sign an executive order on cryptocurrencies. What you are reading in this article is the White House explanation of the cryptocurrency executive order:
Surveys show that approximately 16% of American adults (approximately 40 million) have invested, traded, or used cryptocurrencies. More than 100 countries are considering or launching their Central Bank (CBDC) program. The CBDC is the digital form of a country’s national currency.
The advent of digital assets has provided an opportunity to strengthen America’s superiority in the global financial system and technology, but it has also had significant implications for customer protection, financial stability, national security, and environmental risks. The United States must maintain its technological superiority in this area and support innovation while reducing the risks associated with customers, businesses, the financial system, and the environment. The United States must play a leading role in international interactions and global oversight of digital assets in line with existing values and international competition.
That is why today, US President Joe Biden is signing an executive order that demonstrates the government’s comprehensive approach to addressing the potential risks and benefits of digital assets such as cryptocurrencies and their technologies. The decree outlines national policies towards digital assets in six different priorities. These 6 areas are:
- Consumer and investor protection
- Financial stability
- Financing criminal activities
- US leadership in the world financial system and competitive economy
- Financial inclusion (making financial services and products available to individuals and businesses)
- Responsible innovation
This cryptocurrency-specific executive order specifically puts the following actions on its agenda:
- Protect American customers, investors, and businesses under the direction of the Treasury Department and other agencies to evaluate and develop related policies and recommendations, address the growing impact of cryptocurrencies, and change financial markets for customers, investors, businesses, and equitable economic growth. The decree also encourages lawmakers to ensure adequate oversight and protection of any systemic financial risks posed by cryptocurrencies.
- Protect US and global financial stability and reduce systemic risks by encouraging the Financial Stability Oversight Board to identify and mitigate the financial and economic risks posed by cryptocurrencies and to develop appropriate policies and recommendations to address any legal gaps.
- Reduce the risks associated with national security and criminal financing that result from the illegal use of cryptocurrencies. This is achieved by directing unprecedented focus to coordinated action across all US government agencies, with the goal of reducing these risks. The cryptocurrency executive command also directs various agencies to work with US allies and partners to ensure that international frameworks, capabilities, and collaborations are appropriate and responsive to these risks.
- Promote US excellence in technology and economic competitiveness in order to consolidate and strengthen US excellence in the world financial system. This is accomplished under the direction of the Commerce Department to work with all US government agencies to create a framework that will drive US competition and excellence in the use of cryptographic technologies. This framework will serve as a framework for agencies, and these institutions should use this framework as a priority in policy, research and development, and operational approaches to cryptocurrencies.
- Promoting Fair Access to Secure and Affordable Financial Services: The urgent need for secure, affordable, and accessible financial services as a national interest of America must change our approach to digital asset innovation. Such security access is especially important for communities that have not had adequate access to financial services for a long time. The Secretary of the Treasury, in collaboration with all relevant agencies, will prepare a report on the future of money and payment systems, including the implications for economic growth, financial growth and inclusion, national security, and the impact of technological innovation.
- Supporting Technology Advances and Ensuring the Development and Responsible Use of Digital Assets: Leading the US Government to Take Specific Steps to Study and Support Technology Advances in the Responsible Development, Design, and Implementation of Digital Asset Systems, while Striving to Prioritize Privacy Security, combating illegal use and reducing the harmful effects on the environment.
- Development of US National Coders: If the issuance of national ciphers is considered in the national interest, urgency must be placed in the research and development of this project. The cryptocurrency executive order also requires the Federal Reserve to continue its research, development, and evaluation to build the CBDC, including the development of a plan for broader US government support. This prioritizes US participation in testing with several different countries and ensures our international leadership in promoting the development of the CBDC, which is in line with US democratic priorities and values.
The government continues to work with agencies and Congress to develop risk-protection policies and drive responsible innovation, as well as to work with allies and partners to develop international capabilities in line with national security risks and to work with the private sector to study and support progress. Technology will continue in the digital asset industry
This morning, the US Treasury Department issued a premature statement, following which hopes for an executive order by the US President peaked and caused the price of Bitcoin and other cryptocurrencies to rise significantly.
