Bidens Crypto Executive Order could be a turning point” despite the lack of details

Bidens Crypto Executive Order could be a turning point” despite the lack of details

The new executive regulation on the digital assets of President Biden is an important step in the political decision -making process, although specific legislation could take years.

According to a statement by the White House, Biden signed the implementing regulations on Wednesday, which outlines the government's approach in relation to digital assets and the technology underlying.

John Collins, partner at the consulting firm FS Vectors and former political manager at Coinbase, said, although bidens are only available, a few surprises are the fact that the government interviews is a positive result for the industry.

Collins compared the executive order to the “Framework for Global Electronic Commerce” of the Clinton government, which was published in the 1990s and examined the future of the Internet.

"It is clear that the administration realizes that this will not disappear and that it really emphasizes the crucial importance of technology in various applications for the benefit of the future financial system," said Collins. "You want to make sure that the USA is ahead."

The Bitcoin Prize was around $ 41,840 at 4:00 p.m.-an increase of 8.6 % in 24 hours.

"An effort to bring more clarity into the regulatory framework will definitely bring more confidence to investors and welcome more Americans in the crypto ecosystem," said Thomas Hook, Chief Compliance Officer from BISTAMP in the USA. "While the cryptoma markets may be volatile, today's news show that recognition through the bid administration encourages the market."

What's next?

The order outlines its focus on cryptor regulation about consumer protection, financial stability, risk reduction, the financial leadership role of the United States, financial inclusion and responsible innovation.

In the coming months, there will probably be information requests, discussions and working groups, although specific measures will take some time, said Collins.

"Consider it is recognized that there must be more clarity," he said. "Maybe it's about securities emissions, perhaps about illegal finances, maybe about other things - probably all, and I think that's good."

Kristin Smith, managing director of the crypto lobbyist Blockchain Association, told Blockworks that the beginning of the collection of facts and research on these topics "was a really healthy first step in a political decision-making process".

The arrangement stipulates that government reports are completed within six months, with legislators and public then having the opportunity to comment.

"Obviously we have a lot of work ahead of us, and we may not like every individual political proposal that will be presented in six months, but at least we can think about it methodically and work with the government," said Smith.

A call to further study CBDCs

The more surprising parts of the order, said Smith, was the focus on digital central bank currencies (CBDCS).

It calls for the research and development of a US CBDC "to give urgency"-although this is not a guarantee that it is ever introduced-as well as the evaluation of the required technology.

In her January report on digital currencies of the Central Bank, the Federal Reserve rejected political recommendations.

The Blockchain Association is neutral.

"I think the most important thing for us is that we want the ability of private organizations and individuals to build technology around the dollar, and we saw that in dollar-supported stable coins," said Smith.

Stable coins are noticeable in the Executive Ordinance. Finance Minister Janet Yellen and the chairman of the US Federal Reserve, Jerome Powell, both expressed their concern about their security.

"It is not surprising that stable coins are not mentioned because Yellen is already working in detail on it," said John Belizaire, founder and CEO of Soluna Computing. "In addition, a digital US currency is a competitor of stable coins."

The congress wants to tighten its reins on stable coins. Laws in this direction will probably be brought in by the US legislator this month, reported block works.

Jeremy Allaire, CEO of Circle, the issuer behind the largest stablecoin USD Coin (USDC), the executive regulation called a "turning point".

"The US government has now had a total-state approach to support the open, internet-native business infrastructure, which was introduced by new web3 technologies-and brings the country a step closer to ensuring that the US dollar remains the currency of the Internet and that the USA will remain the home of principles in innovation and competition," said Allaire.

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