Biden Signs Crypto Executive Order

President Biden signed an executive order (EO) on Wednesday that detailed Washington’s plans and views towards digital assets and the crypto industry. 

Many in the crypto community have eagerly awaited the publication of the EO, as there was some fear the administration might take a negative and possibly drastic stance towards crypto.

In short, this wasn’t the case!

Here are three parts of the executive order I find the most interesting and exciting:

• A crypto report is due to the President within 180 days
• The U.S. wants to be a global leader in the development of digital assets
• The U.S. is considering creating its own digital currency

Let’s dig in. (You can read the official executive order here.)
 

A Crypto Report Is Due to the President Within 180 Days

First, in the executive order, President Biden has directed a plethora of federal agencies to research and study digital assets and to then “submit to the President a report…on the implications of developments and adoption of digital assets and changes in financial market and payment system infrastructures for United States consumers, investors, businesses, and for equitable economic growth.” 

The report is due to the President within 180 days of the order. “Federal agencies” include the SEC, the FTC, and more. 

The EO goes on to say that “one section of the report shall address the conditions that would drive mass adoption of different types of digital assets and the risks and opportunities such growth might present to United States consumers, investors, and businesses, including a focus on how technological innovation may impact these efforts and with an eye toward those most vulnerable to disparate impacts.”

Mass adoption? Big stuff.
 

The U.S. Wants to Be a Global Leader in the Development of Digital Assets

Another interesting part of the EO is that the U.S. has now publicly stated it wants to be a leader in the development of digital assets and not a country that’s going to sit on the sidelines.

“We must reinforce United States leadership in the global financial system and in technological and economic competitiveness, including through the responsible development of payment innovations and digital assets.  The United States has an interest in ensuring that it remains at the forefront of responsible development and design of digital assets and the technology that underpins new forms of payments and capital flows in the international financial system, particularly in setting standards that promote:  democratic values; the rule of law; privacy; the protection of consumers, investors, and businesses; and interoperability with digital platforms, legacy architecture, and international payment systems.”

There has been a growing concern amongst some in the crypto community (especially the Bitcoin community) that the United States’ global leadership and influence could be in jeopardy if it were to ignore the significance of digital assets and fall behind other countries investing heavily in the space. So this was welcomed news for many.
 

A Potential U.S. Digital Currency & More

The executive order also talks about a potential U.S. digital currency (CBDC) and discusses plans to better understand what measures might be necessary to protect consumers and investors from the risks of crypto and digital assets, how blockchain could be used for “mitigating technologies to climate impacts,” and more. 
 

So, All Good for Crypto?

Is the executive order all sunshine and rainbows for digital assets? I would say no. While a lot of the contents of the EO is very encouraging, the door is certainly left open for the White House to develop strict regulations and policy based on how it wants to handle information it learns from the report.

Regardless, this is an exciting time. 

Bitcoin’s price sits at $39,657 at the time of this writing.