U.S. takes the lead in digital revolution with Biden's crypto order

Raymond Hsu, CEO and co-founder of Cabital, argues that the US government has shown that crypto is part of the economy and that Americans want to be part of this digital transformation.

Conclusion

  • The executive order signed by Vice President Joe Biden is a significant step forward in the government's effort to regulate cryptocurrency.
  • The White House is hopeful that the emergence of cryptocurrencies will have a positive impact on the US economy.
  • The Commerce Department has been tasked by President Trump with determining how the crypto and blockchain industries may improve the global economy's competitiveness of the United States.

The executive order signed by Vice President Joe Biden is a significant step forward in the government's effort to regulate cryptocurrency.

The President's executive order was criticized by certain crypto aficionados for lacking clarity and specificity. While some feel this is a step in the right direction, others argue that it does not go far enough.

As a general rule, Biden's decision is applauded.

Most individuals in the business, including myself, have generally applauded the White House's plan to regulate crypto in a thorough manner, based on what I have heard and observed. And most significantly, I am relieved that the United States appears to have no intention of enacting a wide-ranging crackdown on the business.

In comparison to the present president, there is a great deal of difference. Donald Trump had stated that he was not a fan of Bitcoin in the past. While in office, Vice President Joe Biden issued an executive order mandating the creation of regulations allowing government agencies to keep an eye on industry. As a result, the United States now has sway over the digital asset market.

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President Biden's executive order makes it quite clear that the United States must take the lead in the digital asset business from a chopper's perspective. This is done while ensuring that the sector grows in a safe way.

US must continue technical leadership in this rapidly emerging field, encouraging innovation and managing the risks for people and companies and the larger financial system and the climate," said a White House information sheet. And it must play a leading role in international engagement and global regulation of digital assets in accordance with democratic ideals and the United States' global competitiveness.

President Biden's directive makes it clear that the federal government views bitcoin as a serious, legitimate, and potentially game-changing sector. That's the message it sends. There are a variety of ways it might influence our digital life, including how we make payments, manage our finances, and more.

However, the devil is in the details. Based on President Biden's executive order, let's see what each department is likely to do.

Biden's mandate: preserving the American economy

Federal regulators oversee the financial stability of the United States through the Financial Stability Oversight Council (FSOC). Cryptocurrencies, particularly stable coins, might pose an economic threat to the United States. The FSOC has lately expressed worry about the adoption of stable currencies and crypto. Even while "the growth of digital assets and their related distributed ledger technology may provide the chance to foster innovation and further modernization of financial infrastructure," it also added. In view of the rapidly growing digital asset market, regulatory attention and coordination are vital."

Stable coins and other cryptos are on the FSOC's list of desired rules because the organization cares about the economy and its consumers.

Combating cryptocurrency scam

A nationwide plan to combat crimes aided by cryptocurrencies will be developed by the Secretary of the Treasury and the Department of Homeland Security, in accordance with Biden's executive order.

The good news is that most bitcoin exchanges have already implemented strong KYC and AML procedures. Additionally, the use of technology to identify suspicious transactions is essential. Most compliant and sound crypto exchanges are already prepared to cooperate with authorities if they do enforce these laws in the future.

The U.S. economy can benefit from cryptocurrency.

According to Biden's executive order, the White House believes that cryptocurrency growth might benefit the country's economy in the long run.

The Commerce Department has been mandated by the president's executive order to examine how the crypto and blockchain industries may help the United States compete in the global economy.

It also orders the government to look for methods to get crypto innovation going in other parts of the country. We call these "Central Bank Digital Currencies" or "Stable Coins" since they are backed by the government (CBDC). Digital yuan is one that has already been introduced in China.

As a symbol of his commitment to the future of the Bitcoin business, Vice President Biden issued an executive order. However, it is still too early to tell whether or not the government will fully embrace and promote cryptography in its various forms and functions. Despite the fact that many Americans want their banks to accept bitcoin, this is not the case. New guidelines from various government agencies are still a mystery to us. However, Biden looks to be taking a middle ground approach and obviously sees advantages in embracing crypto for the country.

While crypto is here to stay and Americans want to be part of this new digital revolution, there is no doubt that the US government is aware of this fact. And it looks like Biden is paying attention.

** Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of USA GAG nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

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