Biden Signs Crypto Executive Order Promoting “Responsible Innovation”

The long-awaited executive order sets high-level goals for federal policy, but the details are yet to become clear

article-image

Blockworks exclusive art by Axel Rangel

share

key takeaways

key takeaways

  • Biden calls for a unified approach on regulating and evaluating cryptocurrencies
  • Industry members welcome regulation, but ask that their voices be heard

President Biden signed an executive order Wednesday morning that asks federal agencies to establish a roadmap for regulating crypto and identify risks and potential for innovation, US Securities and Exchange Commission Chair Gary Gensler wrote on Twitter.

“The rise in digital assets creates an opportunity to reinforce American leadership in the global financial system and at the technological frontier, but also has substantial implications for consumer protection, financial stability, national security, and climate risk,” a fact sheet released by the White House read. 

The order is the first time the executive branch has attempted to create a unified federal strategy around the growing digital asset industry, but it does not provide the clear regulatory guidelines many industry members have requested.

“We hope [the executive order] leads to a future regulatory state where existing agencies have more clarity on how the existing regulatory framework can and should be applied to the blockchain industry and the identification of any gaps,” Denelle Dixon, CEO and executive director of the Stellar Development Foundation, said. 

The order lists six focus areas for cryptocurrency policy and regulation: protect consumers and businesses, protect financial stability, mitigate risk, US leadership in the global financial system and economic competitiveness, financial inclusion and responsible innovation.

The order instructs agencies, including the Treasury and SEC, to research a variety of topics associated with digital assets and recognize potential risks and use cases, including the role a central bank digital currency may play in the US. 

“Under the executive order, Treasury will partner with interagency colleagues to produce a report on the future of money and payment systems,” Treasury Secretary Janet Yellen said in a statement Wednesday. “We’ll also convene the Financial Stability Oversight Council to evaluate the potential financial stability risks of digital assets and assess whether appropriate safeguards are in place. And, because the questions raised by digital assets often have important cross-border dimensions, we’ll work with our international partners to promote robust standards and a level playing field.”

As agencies continue to work toward a unified digital asset strategy, industry members ask that their voices be heard. 

“This call for collaboration cannot be an excuse to keep the industry from having a seat at the table,” Dixon said. “We’ve come too far in a short period of time to begin to shut outside perspectives out now.”

The order comes as Congress also looks to tighten its reins on the stablecoin industry. Bills designed to regulate the digital assets will likely be introduced by US lawmakers in the House and Senate later this month, according to a source familiar with the matter.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

MON - WED, MARCH 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience:  Attend expert-led panel discussions and fireside chats  Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts   Grow your network […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Frax report cover.jpg

Research

Frax saw continued development in its frxETH liquid staking derivative and Fraxlend money market throughout 2023. Frax V3 introduces an RWA strategy to drive utility to the protocol's cornerstone product, the FRAX stablecoin.

article-image

Commissioner Peirce would have done things differently if she could when it comes to her agency’s crypto enforcement actions

article-image

MicroStrategy discloses the purchase of 16,000 bitcoin throughout November

article-image

Digital asset firms face potential new regulatory landscape under Treasury’s proposed authority expansion

article-image

Uniswap Labs will be providing trading APIs to Talos investors through Fireblocks

article-image

DYDX supply will climb by up to 80% after the Friday unlock, but a couple factors make a massive sell-off appear unlikely

article-image

Switzerland-based Pando Asset, which has crypto products trading on the SIX Swiss Exchange, now looks to the US