How The Biden Crypto Order Will Affect The Crypto Market

2022-05-03, 02:03

Governments across the world are formulating frameworks to guide the crypto market.

The US Government is not left behind as the President released an executive order on the 9th of March, 2022.

The report shows that about 8.7% of Americans own various crypto tokens and more than half of the entire population are aware of cryptocurrency.

In the last couple of years, crypto has gained momentum in America and dominated the screen, and this dominance calls for Government intervention.

The executive order is rolling out a national policy for blockchain assets covering six significant priorities.

Experts believe the executive order will be significant to the crypto market in America and the world.

It is no longer news that all parts of the world are adopting cryptocurrency as means of exchange and transactions.

Government agencies and regulatory bodies across the world are looking inward as to how to formulate and adopt a framework that will give legal backing to cryptocurrency.

Since the Crypto market continues to expand exponentially, the Government at all levels needs to support it and perform oversight functions.

The US government is looking in this direction and has recently introduced a governance framework for the crypto market. This framework comes in the form of an executive order.

This article will identify the Executive order promulgated by President Joe Biden and how the ruling will affect the crypto market.

Let's dig in.

It is estimated that 27 million people currently own various cryptocurrencies in America, which shows 8.7% of America's total population.

According to Gallup, cryptocurrency has gained momentum in more than half of the US population, especially young men.

America's most-watched television show, The Superbowl, had most of its advertisements on cryptocurrency. The wave of cryptocurrency has spread across all TV shows.

The following statistics and events show that the cryptocurrency market in America continues to rise and gain the acceptance of new enthusiasts.

It is, therefore, expedient for the American Government to look into the space and exercise a level of oversight and regulation. This necessitated the need for the Executive order by the Biden Administration.

Let's take a detailed look at the Executive Order.

Joe Biden's Executive Order On The Crypto Market.

Image: Mr Whale- Medium

On the 9th of March, 2022, under the leadership of Joe Biden, the American government released an Executive order. The Executive Order called on the Government to examine the benefits and risks of cryptocurrency.

According to the American Government, the United States must maintain technological leadership in crypto. It is expected to play a leadership role in international engagements and governance of crypto assets.

In line with this, the Biden Administration is introducing the Executive order. The order roles out a national policy for blockchain assets covering six significant priorities.

These priority areas include; consumer and investor protection, financial stability, financial inclusion, leadership in the world financial system, economic competitiveness, and responsible innovation.

The Core Areas Of The Executive Order

The Executive Order calls for measures in the following ways;

Protection of US Consumers, Investors, and Businesses

The Executive order has directed the Department of Treasury and other relevant agencies to look into the growing cryptocurrency sector. After the assessment, they are to develop policy recommendations to mitigate the implications on consumers, investors, businesses, and the Nation's economic growth.

In protecting these people, the order also encourages regulators to provide oversight and safeguard against financial risks associated with the crypto space.

Protect America's Financial stability and Mitigate Systemic Risk

The Executive order encourages the financial stability oversight council to identify financial risks that might affect the economy. It is expected to find ways to mitigate the financial risks and formulate appropriate policies to address regulatory gaps.

Mitigate The Illicit Financial Activities And The National Security Risks Posed By Digital Assets

The Executive Order gives a direct call to the agencies and Government partners to abolish illegal crypto activities.

It is expected that the US government agencies will look into cryptocurrency use in financial crimes, illegal activities, and illicit finance.

The framework directs government agencies to partner with allies and stakeholders to ensure international compliance and capabilities responsive to these risks.

Promote And Reinforce US Leadership In The Global Financial System

In the Executive Order, Joe Biden directed the Department of Commerce to work across the US government and establish a framework. The framework will drive America's competitiveness and leadership in exercising dominance of digital asset technologies.

Equal Access To Safe And Affordable Financial Services

The Executive order directs the Secretary of the Treasury to work with relevant agencies and produce a robust report on (safe & secure) payment systems.

The Executive order shows interest in the US Government's critical need for safe, secure, affordable, and accessible financial services.

Explore The US Central Bank Digital Currency

The Executive Order directs the US Government to prioritize researching and developing the United States “Digital Dollar.”

The order places the development of US CBDC as a top priority. The federal reserve is mandated to urgently develop technological infrastructure and capacity needs for a potential US Central Bank Digital Currency.

Having examined the Executive Order's critical areas, we shall identify the significance of Biden's Executive Order for the crypto market.

Significance of The Executive Order On The Crypto Market

Government Regulations And Active Participation
The US Government has laid a precedent for other nations to follow. Experts believe that the tone of the order signals a positive impact on the crypto market.

The Biden Government has shown openness to blockchain technology and has given room for other Nations and Government agencies to tow the path.

Regulatory Clarity
The order has set the stage for regulatory clarity in cryptocurrency. There is no ambiguity in the areas that the framework covers.

The Executive order addresses the promise and problems of cryptocurrency and other related matters.

Conclusion

The Executive Order shows the willingness of Biden’s administration to create a roadmap for blockchain technology.

The Government is ready to carry out oversight functions on the crypto market and protect the interest of Americans.

It is expected that more Nations will give a clear stance on the Crypto market's perception and provide their frameworks.

Author: Valentine A., Gate.io Researcher
This article represents only the researcher's views and does not constitute any investment suggestions.
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