Cryptocurrency Executive Order (EO)

This blog assumes you know what cryptocurrency is. The Biden Cryptocurrency Executive Order EO serves as a high-level homework assignment to the other branches of government.

Basically, it highlighted what’s been happening in this area in the past few years:

  • Digital assets are skyrocketing in terms of market cap (going from $14 Billion in 2016 to $3 Trillion in 2021)*
  • Countries are exploring their own Central Bank Digital Currencies (CBDCs) (i.e., if Japan were to digitize the Yen). What’s a Central Bank (CB)? Basically, a national government bank. The Federal Reserve is our CB.

The Cryptocurrency Executive Order EO indicated that the U.S. is a leader in a lot of areas, and we should get our act together and figure out how to protect people from the various risks that go along with crypto.  It also indicated that there are few protections in place currently because there are, literally, no crypto standards or oversight. Oh, and by the way, we should try to make sure that people stop using crypto for trafficking, terrorism, money laundering and other crimes.

Then, it encourages Congress to get organized and work with other government agencies and committees to figure it all out, as well as get more clear on our own CBDC.

The main point was that it gave a date (within 180 days of the order, dated 3/9/22), that people from all around the government (from Homeland Security to the EPA to Congress and everything in between) should work together to write and submit a report to the president on their best thinking to address said issues.  The end.

How did others react?

Well, mostly people were like, duh, yes, we need regulation. Crypto is so Wild West and the recent events in the Ukraine have highlighted that, yes, bad people tend to hide their wealth in crypto and may use it for bad things and no can tell because it’s all very discreet and difficult to track.

Of course, the problem will be agreeing on the type, scope, and implementation of regulations.


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