The White House announced Wednesday that President Joe Biden signed an executive order directing the federal government to look into cryptocurrencies and how to regulate the industry.
According to a White House fact sheet, the order calls on federal agencies to take a unified approach to the regulation and oversight of digital assets.
“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,” the White House said. “The United States must maintain technological leadership in this rapidly growing space, supporting innovation while mitigating the risks for consumers, businesses, the broader financial system, and the climate. And it must play a leading role in international engagement and the global governance of digital assets consistent with democratic values and U.S. global competitiveness.”
Digital assets, including cryptocurrencies, have grown to $3 trillion as of last November, up from $14 billion in 2017. Surveys suggest that around 16 percent of American adults have invested in, traded, or used cryptocurrencies. More than 100 countries are exploring Central Bank Digital Currencies (CBDCs), a digital form of a country’s sovereign currency.
The executive order calls for 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; to protect the U.S. and global financial stability by encouraging the Financial Stability Oversight Council to identify and mitigate economy-wide financial risks; to mitigate illicit financial and national security risks; to promote U.S. leadership in technology and economic competitiveness; and to promote equitable access for safe and affordable financial services, while supporting technological advances and responsible development of digital assets.
The order also directs federal agencies to look into U.S. CBDC.
“The Administration will continue work across agencies and with Congress to establish policies that guard against risks and guide responsible innovation, with our allies and partners to develop aligned international capabilities that respond to national security risks, and with the private sector to study and support technological advances in digital assets,” the White House said.