The much-awaited executive order will be signed today by President Joe Biden. The order aims to address the benefits and dangers of digital currencies as well as direct government entities to work together to bolster innovation and prevent illicit crimes.
A statement read from the White House (WH) reveals the order will also push the United States to the forefront of innovation as it prepares to develop its CBDC, the digital Dollar. Furthermore, the policy will protect consumers, businesses, the financial structure, and the climate.
Addressing climate change is one of the agendas of the Biden administration. Given that cryptocurrency is a contributory factor to these drastic climate changes, the new crypto policy comes in handy to mitigate these issues.
Repositioning the United States for Global Competitiveness
The new policy was formulated to focus on these six primary points – consumer protection, crimes, economic stability, drive global competitiveness, foster financial inclusion, and drive innovation responsibly. However, that’s not the bigger picture.
The law will allow the U.S. to play a massive role in international relations and the worldwide governance of virtual currencies in line with democratic principles, resulting in global competitiveness. Essentially, Biden’s policy will keep the United States in pole position in global technology.
Some parts of the agenda are already in motion. For example, the government is already exploring the digital Dollar, which started in January this year, after the discussion paper was published. In addition, laws to regulate stablecoins are underway after the PWG on financial markets alongside the FDIC, and OCC asked Congress to draft regulations.
Undoubtedly, Congress will have a hand in these processes. The WH said the current administration would work with agencies and Congress to push for healthy policies that guide innovation without affecting security and the blockchain sector.
Cryptocurrencies Rallied After Leaked Report of the Executive Order
Bitcoin and the general crypto market moved out of the red zone following the news of the leaked EO. BTC rose 8% to trade at $41.5k within a couple of hours of the leaked details. Now, the flagship currency is at $42k.
Others like ETH and XRP rose 7% and 4%. The biggest climber was Terra’s LUNA, which jumped 22%. However, the order wasn’t the only factor responsible for the climb, as staking and increased transaction activity in the Terra blockchain contributed.
All fingers pointed to the DOT Secretary Janet Yellen for the accidental release of the crypto order. Yellen praised Joe Biden for the crypto order, calling it historic that balances responsible innovation and customer safety.
For months, the crypto community was doubtful about how the upcoming crypto bill would affect the market. Fortunately, they don’t need to be afraid. They will look back and reflect that the long wait was worth it.
