Regulators and Industry Leaders Respond to Biden's Executive Order on Cryptocurrencies

U.S. President Joe Biden has signed his 82nd executive order since he was sworn in in January 2021, directly proposing a regulatory framework for digital assets in a rare moment for Biden.

In a statement Wednesday, the White House said President Biden’s executive order requires government agencies to explore the potential launch of a U.S. central bank digital currency and coordinate and integrate policy on a national framework for cryptocurrencies. Many media outlets had previously reported that the U.S. president had initially planned to sign the executive order in February, but that plan may have been delayed following Russia's military action against Ukraine.

Many industry leaders responded by likening the executive order to a regulatory opportunity -- a Biden presidency that has rarely spoken directly about cryptocurrencies and blockchain. Reports that Russia could use digital currencies to evade U.S. sanctions may be the reason why Biden didn’t wait any longer. The executive order mentions the risk of sanctions avoidance three times, and White House National Economic Council Director Brian Deese and National Security Adviser Jake Sullivan agree:

"The approach outlined in the executive order will strengthen U.S. leadership in the global financial system and safeguard the long-term effectiveness of key national security tools such as sanctions and anti-money laundering frameworks."

Lawmakers and regulators were quick to comment on the executive order. Treasury Secretary Janet Yellen, who may have issued a statement on the matter prematurely, said the executive order, while supporting innovation, could "deliver substantial benefits to the nation, consumers and businesses." , while addressing industry risks. Senator Elizabeth Warren of Massachusetts, who often associates cryptocurrencies with illicit behavior, said Biden was “right to focus on the risks of cryptocurrencies,” adding that the U.S. government needed to “enact strong policies before it’s too late.” rule".

“While I agree with this president’s desire to fight money laundering and defend the national security of the United States, I think his executive order ignores the fact that the vast majority of digital asset users are law-abiding and working to make our financial system Get better,” said Sen. Cynthia Lummis of Wyoming, a longtime Bitcoin holder who has taken a pro-crypto stance in many legislation. “We need well-thought-out rules around stablecoins, and while I still don’t believe in the need for a central bank digital currency, I will continue to pay close attention to the Fed’s work in this area.”

The Council for Crypto Innovation (CCI), a coalition of crypto companies originally formed in April 2021 and including major exchanges such as Coinbase and Gemini, said the executive order takes a “comprehensive and well-informed” approach to cryptocurrencies. The group also said this could lead to regulatory transparency, credible financial innovation and a more inclusive economy.

“We look forward to working with regulators and policymakers in the coming months to develop smart policies that will strengthen the United States’ position as the global leader in crypto innovation,” the CCI said. “Collaboration is critical.”

President Biden has signed an executive order recognizing the huge potential of cryptocurrencies. This reflects the importance of cryptocurrencies to the American people. We share this president's commitment to trusted financial innovation and a fairer, more inclusive economy. — Crypto Council for Innovation (@crypto_council) March 9, 2022

Jeremy Allaire, co-founder and CEO of crypto payments company Circle, added:

“For those of us in the crypto community, with all due respect, this executive order should be seen as the greatest opportunity to engage with policymakers on important issues. As we all know, the doors of policymakers are open, and now, this It's a national topic in the United States."