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President Biden has signed the much-awaited executive order on crypto regulation. This has prompted a wide reaction from regulators and top players in the industry. The executive order is aimed at securing the country’s leading position in the crypto industry while reducing the risks for both the consumers and the general financial system.
The digital asset industry has not had a standard regulatory framework since cryptocurrencies busted into the scene. But many stakeholders feel the new order is the right step to offer much-needed comprehensive regulation.
The Order Will Address Security Issues In The Crypto Industry
National security adviser Jake Sullivan and National Economic Council Director Brian Deese, in a joint statement, commented on the development.
They stated that the American digital asset approach encourages innovation but reduces the risks to businesses, investors, and consumers. It will also maintain a long-term approach to providing critical national security tools such as anti-money laundering frameworks.
Last week, the U.S government expressed the need to hasten the development of a comprehensive cryptocurrency regulatory framework. This came in the wake of the sanctions imposed on Russia for its invasion of Ukraine. Despite the sanctions, there were concerns that Russia could take advantage of the lack of regulation in digital assets to continue accessing funds in the cryptocurrency market. The latest response and executive order may not come as a coincidence and could be a response to the earlier calls made by the government last week.
On March 3, President Biden announced a new round of sanctions against Russia. This time, the sanctions were targeting some associates of President Putin as well as Russian oligarchs.
The Order Also Addresses R&D On Digital Dollar
The executive order will also address the incessant use of cryptocurrencies for money laundering ad illicit financial transactions. The mitigation procedure will also consider the danger illicit transactions in cryptocurrencies pose to national security.
Federal policymakers have also been asked to prioritize the research and development of central bank digital currency (CBDC).
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