The crypto market saw an upsurge on Wednesday, March 9 as it became clear that the Biden administration is fixated on ensuring the responsible use of cryptocurrencies. A leaked document seen earlier showed that the Biden administration won’t be moving against digital currencies. This was confirmed by the official statement released by the White House later today.
The press release from the Whitehouse explaining the policy titled – ‘FACT SHEET: President Biden to Sign Executive Order on Ensuring Responsible Innovation in Digital Assets’, clarified the policy of the Biden administration towards cryptocurrencies.
US To Play Active Role in Crypto Development
Among the highlights from the statement is that the United States intends to encourage the development of digital currencies, bearing in mind that innovation will continue to play an active role in finance. This is necessary to maintain the country’s leadership role in technology and finance. The release however highlighted the risks associated with crypto-assets, stating that the administration intends to mitigate these threats.
It is obvious from the White House release that the US government neither has the intention of playing the role of a spectator nor spoiler in the burgeoning crypto space, but intends to take advantage of the technology to maintain its leading role in technology and global finance.
The statement, marginally rendered states:
“The United States must maintain technological leadership in this rapidly growing space, supporting innovation while mitigating the risks for consumers, businesses, the broader financial system, and the climate. And, it must play a leading role in international engagement and the global governance of digital assets consistent with democratic values and U.S. global competitiveness.”
The Executive Order signed by President Biden today is the first official act of the US government that gives a policy direction on cryptocurrencies while ensuring that consumer protection is not compromised in the quest to harness the potential of innovation. The policy also addressed the potentials of the underlying technology, the Distributed Ledger Technology, which is commonly known as the blockchain.
Summary of The Executive Order
The Executive Order addresses issues such as:
The protection of US investors and businesses through the collaboration of the Treasury Department.
Combating illicit use of cryptocurrency funds to mitigate its effects on the US national interest through the coordination of relevant federal agencies.
Advance the leadership role of the US in global finance through active participation of the Department of Commerce, which will engender competitiveness and participation by leveraging the technology.
The country will also move in the direction of the development of a CBDC to harness the potential of the technology in its monetary policies and enhance its dominance of global finance.
It is not surprising that the crypto market reacted positively to the news of a favorable US policy towards cryptocurrencies. Bitcoin is currently trading above $42,000. Prior to the news, the coin reflected uncertainty in the market with its price dropping below $38,000 a couple of days ago.