Members of Congress generally responded favorably to President Joe Biden’s executive order on cryptocurrencies issued Wednesday.
U.S. Sen. Sherrod Brown (D-OH), chairman of the Senate Committee on Banking, Housing, and Urban Affairs, applauded the President’s move.
“It’s imperative we strengthen our financial resilience and national security right now. That includes protecting Americans from the risks of crypto to our economy and ensuring crypto can’t be used to skirt the law,” Brown said. “The President is right to take a whole-of-government approach to addressing cryptocurrencies and considering a central bank digital currency. I look forward to working with the Administration and my colleagues in Congress to protect consumers, expand financial inclusion, and safeguard our national security.”
U.S. Sen. Pat Toomey (R-PA), ranking member of the committee, said that while it was important for the federal government to move toward regulation.
“I’m encouraged to see the Biden administration acknowledge that digital assets, including cryptocurrencies and the underlying technology, have tremendous potential benefits,” Toomey said in a statement. “As the White House itself stated, the U.S. must maintain its leadership in this space, which is why lawmakers and regulators should do nothing to harm America’s longstanding tradition of fostering technological innovation.”
But, he warned, it would be wrong for Congress to act in a vacuum.
“The executive order also underscores the need for Congress to enact a regulatory framework specific to digital assets. This technology empowers individuals, and they deserve to have a say in crafting thoughtful legislation,” Toomey said. “The administration should resist the urge to stretch existing laws in an effort to expand its regulatory authority.”
President Biden’s order calls on federal agencies to explore ways to protect U.S. consumers, investors, and businesses while encouraging regulators to ensure sufficient oversight and safeguards against systemic financial risks while encouraging the Financial Stability Oversight Council to identify and mitigate financial risks. The order also directs the federal government to assess the infrastructure needed to create a potential Central Bank Digital Currency (CBDC).
U.S. Rep. Maxine Waters (D-CA), chair of the House Financial Services Committee, said the executive order was an important step in determining cryptocurrency’s impact on the U.S. financial system and society.
“Of particular note, I am heartened to see that the Executive Order places an emphasis on studying the potential of a U.S. central bank digital currency (CBDC),” she said in a statement. “With working families across the country looking to rebuild from the pandemic by turning to financial alternatives like cryptocurrency, ensuring that people are not vulnerable to fraud, manipulation, and abuse is imperative.”