US: Biden signs executive order on cryptocurrencies

In the US, President Joe Biden signs an executive order on cryptocurrencies, to establish the first federal strategy on digital assets in the country. The announcement comes from Brian Deese, director of the NEC, and Jake Sullivan, national security adviser. 

Biden’s executive order on cryptocurrencies

According to a statement by Brian Deese, director of the NEC, and Jack Sullivan, national security advisor, a new executive order on cryptocurrencies and digital assets was signed today by Joe Biden, President of the United States. 

The first goal of this executive order is to establish the first comprehensive federal digital asset strategy in the country, but also a fair compromise between wanting to be positioned as innovators and wanting to protect consumers. 

Specifically, here’s what the statement says:

“This E.O. marks an intensification of our efforts to promote responsible innovation in the digital assets space – innovation that works for all Americans, protects our national security interests, and contributes to our economic competitiveness and growth”.

Thus, this would constitute responsible innovation that the US government would like to adopt with respect to digital assets, so as to encourage innovation while mitigating risks for consumers, investors and businesses. 

The idea of this ordinance is precisely to strengthen US leadership in the global financial system, knowing that in the past, many innovations would have highlighted more inequalities and increased systemic financial risk. 

The US outlines its new approach to cryptocurrencies and CBDCs

With this executive order, the US wants to outline its approach for digital assets but also for cryptocurrencies and, as the document mentions, also “for any future US central bank digital currency”.

It is an evolving basis, but one that has been delivered after months of work with various interested parties such as government, industry, lawyers, academia and international allies and partners, all to identify what actions to take to promote “responsible innovation” in the digital asset ecosystem.

In this regard, US SEC Chairman Gary Gensler made a comment on his Twitter account:

Today, @POTUS signed an Executive Order on crypto-assets. I look forward to collaborating with colleagues across the government to achieve important public policy goals: protecting investors & consumers, guarding against illicit activity, & helping ensure financial stability.

— Gary Gensler (@GaryGensler) March 9, 2022

“Today, POTUS signed an Executive Order on crypto-assets. I look forward to collaborating with colleagues across the government to achieve important public policy goals: protecting investors & consumers, guarding against illicit activity, & helping ensure financial stability”.

Janet Yellen and crypto regulation

On this revealing day for the US and cryptocurrencies, Treasury Secretary Janet Yellen is said to have released information just prior to the publication of Biden’s execution order. 

Yellen is said to have anticipated the approach of innovation responsible for this executive order, speaking positively about it despite the fact that Yellen has always been critical of the cryptocurrency world. 

Not surprisingly, late last month, Yellen slowed the progress of the executive order due to a dispute between her staff and officials at the National Economic Council. 

The CBDC, or Central Bank Digital Currency, was at the centre of the dispute. According to Yellen, it was not worth mentioning in order not to pressure the White House. Today it seems that the future direction is towards a “digital dollar”.