An Inside Look At Biden’s Crypto Order
President Joe Biden has finally made a move on the crypto front. The executive order is applicable to several topics that will influence crypto trading and investing. The president’s latest order is important in the context of crypto investing as it has the potential to make it slightly more difficult to profitably trade these increasingly popular digital value stores Without further ado, let’s take a look at what the order contains.
The Executive Order Could Be An Industry Boon
Though most crypto experts anticipated a wide panning of the seemingly inevitable crypto order, the truth is Biden’s rules pertaining to these digital stores of value have the potential to be bullish catalysts. The order requires that agencies safeguard stakeholders to mitigate significant volatility and losses.
The order also delves into responsible innovative progress along with the prospect of a digital currency available through a central bank. Investors lauded the order, pushing the crypto market higher for the day. Bitcoin quickly jumped only to slide about 5% within 24 hours.
Crypto’s Lucky Number 7
All in all, the order contains seven essential topics. Two of those topics pertain to consumer, business and investor protection in the context of trading or investing in digital assets. The other component of protection ensures crypto does not lead to a worldwide financial collapse.
The executive order also requests that agencies in the United States work with one another and their partners abroad to guarantee crypto is not used for illegal activity. The overarching fear is that the DeFi movement highlighted by the blockchain has the potential to permit illegal activity that goes unnoticed.
Biden Is A Crypto Bull
The president’s crypto order puts the onus on agencies to catalyze the country’s leadership and competitiveness through the leveraging of crypto technology. The report notes the advantages of digital assets in the context of obtaining access to the financial system. In fact, Biden went as far as charging the Secretary of the Treasury and additional agencies with crafting a report pertaining to the future of digital payments and money as a whole.
Biden’s order even requests that the federal government delve into how crypto can be developed in the years ahead to prioritize digital security and user privacy. The president also asked the Fed to explore the prospect of a United States Central Bank Digital Currency, referred to as CBDC. CBDC would function as a stablecoin and be subjected to considerable regulation. Stablecoins are best defined as reliable digital value stores that are tied to currencies and/or commodities.
Smooth Sailing Might Be Ahead For Crypto Holders
The takeaway from Biden’s order is that the federal government is endorsing cryptocurrency as a legitimate value store. Though there is the potential for additional crypto regulation to be passed into law in the years ahead, it is also possible that Biden’s order will be the extent of industry regulation.
In summary, Biden’s order paves a path for Wall Street to invest even more money into cryptocurrencies of all different types. Industry experts anticipate an influx of money into crypto as well as stocks relating to crypto in the weeks and months ahead. Biden’s foresight will undoubtedly play an important part in shifting the narrative away from crypto being a speculative play into it being a legitimate investment for the short-term and the long-term.