President Biden to sign executive order on bitcoin, cryptocurrencies and CBDCs
US President Biden will soon be signing an executive order that will have direct effect on bitcoin, cryptocurrencies and CBDCs. Keep in mind that no direct action will be taken from this order as it only lays out a process and series of deadlines for an interagency team to write framework around digital assets in 6 different, broad, categories. There are six categories of ‘objectives’ set out by the executive order.
These are the objectives that the report (to be delivered to the president) will address.
Protect consumers, investors, & businesses
This section seems to speak more to centralized businesses than decentralized protocols. It touches on the past failures of exchanges to protect assets & consumer data. It seems to outline protecting investor privacy as a priority.
Protect US and global financial stability
This section covers compliance and lack of existing legislation. But the main idea? “same business, same risks, same rules.” It also recognizes that legislation might need to change to address new types of assets.
Address Illicit Finance
This section specifically addresses:
• Money Laundering
• Financing of terrorism
It does seem to suggest that it’s well within reason for the US government to regulated decentralized platforms, in the text quoted below.
“where digital assets are abused in illicit ways or undermine national security, it is in national interest to take actions to mitigate these illicit finance and national security risks through regulation, oversight, law enforcement action or use of other US government authorities. “
Reinforce US Financial Leadership
This one is, in our opinion, the most optimistic section. Here, Biden clearly outlines that the administration doesn’t want to push crypto abroad. Also notable? They want to protect the regime and superiority of the dollar.
Access to Safe and Affordable Financial Services
Here, the order addresses both Financial services domestically and Cross-border payments/remittances. It also recognizes that some Americans are underserved by the current banking system.
Support Technological Advances
This section particularly speaks to climate change, looking for crypto to “reduce negative climate impacts and environmental pollution” while simultaneously protecting privacy and security.