The news: US President Joe Biden signed a sweeping executive order on cryptocurrencies, signaling broader future oversight of the industry.
What’s in the Order? It lays out a policy for digital assets and attempts to address the lack of a US regulatory framework for crypto:
What this means: The Biden administration struck a neutral tone on crypto.
The big takeaway: The order doesn’t offer a timeframe and it’s hard to predict when oversight will become law. But it’s clear that big changes are on the way for US crypto regulation. The signing of the order signals the Biden administration will become increasingly involved in oversight of the digital asset space and expresses its concern that an absence of governance leaves consumers and financial systems at risk.
As the order’s fact sheet noted, around 16% of adult Americans or about 40 million people use crypto. Its emergence into the mainstream is forcing the White House to reconsider how it is regulated and where it belongs within traditional financial systems.
In addition, while the Biden administration's official backing of research into a CBDC isn’t an explicit show of support, it’s evidence that the concept is being taken seriously and it may help expedite a final decision on whether the US will follow other countries that are looking into and testing a CBDC.