Officials from various agencies will also research the multiple advantages of digital assets and potential risks.
According to Squawk Box, CEA Member for President Biden, Bernstein, financial innovation in digital assets offers excellent potential.
“We intend to maintain that lead, but history has been unequivocally clear–absent adequate guardrails, protections, safeguards, unchecked financial innovation can introduce deep and systemic risk.”
The US Treasury Department noted that the executive order supports responsible innovation that could significantly benefit the country. The Treasury Department and other agencies will develop policies to protect the public and businesses from systemic financial risks with the executive order. They will also work with international allies to minimise threats to national security.
The strategy also encourages the development of digital assets and promotes cryptocurrencies as a competitive tool. The Commerce Department will also create a framework to support the development of such assets.
The order aims to steer the digital goods and cryptocurrency industry in a way that’s consistent with the US democratic values. It will help the country maintain its position as a global leader in the finance industry.
The executive order promises to give the US a more unified approach to cryptocurrencies, which was previously handled by regulators more reactively. It could help pave the way for creating a digital dollar, though the timeline for implementing these regulations is unclear.
Although the order doesn’t establish a timeline for implementing regulations, it’s a start and doesn’t provide a comprehensive view of cryptocurrencies. It is still a start and doesn’t guarantee concrete action.
The cryptocurrency industry welcomed the president’s plan to address the lack of regulatory certainty for digital assets. Experts said the move would help address the long-standing lack of strategic direction from the federal government for years.
In terms of price activity, the whole crypto market is up 6.5 percent due to the Biden news in terms of price activity. Bitcoin (BTC) is now up 10% in the last 24 hours, with Ethereum (ETH) up 8%, Avalanche (AVAX) up 9%, and Terra (LUNA) rising with a 21% daily gain at the time of writing. The worldwide crypto market valuation is now $1.85 trillion, a 7.70 percent gain over the previous day. Furthermore, the entire crypto market volume during the last 24 hours is $96.59B, a 14.68 percent rise.
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