The US president Joe Biden has finally announced his much-anticipated executive order on digital assets. It took a somewhat supportive stance towards the ever-increasing crypto industry.
The “Ensuring Responsible Development of Digital Assets” titled order will direct agencies across the federal government. They’ll generate reports on digital currencies while considering new regulations.
He signed the executive order on Wednesday. And prices of the major crypto assets literally made a jump after its announcement.
Bitcoin rocketed nearly 8% within hours to value $41,944 as per CoinMetrics. Other cryptos have also checked for sharp increments following the order.
The published executive order will try to establish a working framework for US crypto development. In fact, the US government’s possibilities of a digital currency will get evaluated under the attempts.
It mainly outlines the risks posed to the overall economy by the cryptos. Also, the action will take national security, climate, and potential benefits.
And the entire crypto industry, as well as its investors, broadly welcomed the decision.
Critics always point out the lack of regulatory measures to hold the US back regarding cryptocurrency. They also said its almost no/poor regulation is a barrier to the institutional adaption of digital assets.
Treasury Secretary Yellen made a statement on the executive order as well. She said the order called for a coordinated & comprehensive approach to the digital asset policy.
Meantime, there have been many suggestions on how the executive order will accomplish its tasks. Kristin Smith, Executive Director of the Blockchain Association, also talked to told CNBC on Wednesday.
The order initiates a six-month-long process for the regulatory agencies to examine the industry. Specific regulatory proposals may arrive after checking the results of the investigation.
But the order also possesses futuristic threats with downsides for the crypto industry.
The government can eventually impose more stringent rules in the end. And the decisions may drive the industry overseas – Kristine uttered.
Biden administration pointed increasing popularity of cryptos behind the executive order. But there are speculations about addressing the possible Russian attempt to avoid sanctions using cryptos.