President of United States of America Joe Biden has signed the ‘Executive Order on Ensuring Responsible Development of Digital Assets. This is the first comprehensive set of rules overseeing cryptocurrencies and other virtual assets in the US.
The US has emerged as a centre of crypto activity. The country is home to over 35 % of Bitcoin’s mining volume capacity and over 100 million cryptocurrency investors through its various cryptocurrency exchanges.
National Security Adviser Jake Sullivan and Economic Council Chair Brian Deese released a joint statement. “The executive order will help position the US to keep playing a leading role in the innovation and governance of the digital assets ecosystem at home and abroad, in a way that protects consumers, is consistent with our democratic values and advances US global competitiveness”.
The executive order is widely seen as neutral towards digital currencies. The regulations and orders do not seem to impose a ban on all virtual currencies. But, at the same time, the order also does not legalise these currencies.
Joe Biden has asked several federal agencies to develop responses to the developing cryptocurrency technologies. Of course, this will mean different things for each department. But among these directives is also the direction to the Federal Reserve to study the possibility of a digital dollar or a Central Bank Digital Currency (CBDC).
Additionally, the Executive order also sets out six key priorities for the US government regarding cryptocurrencies. These include consumer protection, use of cryptocurrency for criminal priorities, volatility of cryptocurrency, financial inclusion, and responsible innovation in newer cryptocurrency technologies.
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