Biden signs Bitcoin executive order and says CBDC is a matter of “urgency” to the US
The US President Joe Biden has signed an executive order that actively calls for policies on Bitcoin and other cryptocurrencies and urgent action in researching and developing a central bank digital currency (CBDC) in the US. The executive order outlines how the government as a whole shall work in approaching the issue of regulating cryptocurrencies. It calls on all regulatory authorities to collaborate in the regulation and development of digital assets.
The order states:
“My Administration places the highest urgency on research and development efforts into the potential design and deployment options of a United States CBDC. Any future dollar payment system should be designed in a way that is consistent with United States priorities.”
Recap of the executive order
According to the executive order, most regulatory agencies have between 120 days and one year to provide their reports on how Bitcoin and other cryptocurrencies operate within the US economy, how they can be regulated, and how to prevent their illegal use.
The order specifically gives a 210-day deadline on a proposal for CBDC development.
Of utmost importance is honing the illicit use of cryptocurrencies like cases of crypto being used in ransomware attacks and the order seeks to properly regulate digital payment methods and stablecoins.
The order states:
“The international Financial Stability Board (FSB), together with standard-setting bodies, is leading work on issues related to stablecoins, cross‑border funds transfers, and payments, and other international dimensions of digital assets and payments, while FATF [Financial Action Task Force] continues its leadership in setting AML/CFT [Anti-Money Laundering/Combating the Financing of Terrorism] standards for digital assets.”
The order also directs the Treasury Department, the Financial Stability Oversight Council, Federal Trade Commission, the Securities and Exchange Commission, federal banking agencies, the Consumer Financial Protection Bureau, and Commodity Futures Trading Commission to come up with policies for Bitcoin and cryptocurrencies to combat the illicit use of digital assets and protect individuals from “systemic financial risks.”
The order states:
“We must mitigate the illicit finance and national security risks posed by misuse of digital assets.”
The executive order did not leave out the matter of national security and it states that a non-state currency can be used to circumvent sanctions issued against regimes by the United States.
Effect of the executive order on the crypto market
The order has been received well by the majority of crypto enthusiasts and the crypto market which has been rising in anticipation of the order has surged even higher after the order was signed.
Bitcoin for example has surged by over 8% today and currently trades above $42K while Ethereum is up by over 5% and currently trades at $2,701.22. Terra (LUNA) which is leading the current bounce back among altcoins has raised by over 16% and currently trades at $99.67.
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