A couple of weeks ago news broke that President Biden was going to sign an Executive Order that dealt with cryptocurrency however due to disputes with the Treasury Department it was paused. Russia then invaded Ukraine and crypto took the spotlight again as people sent millions of dollars in crypto donations to Ukraine and rumors of Russians using crypto to beat sanctions emerged. This forced the administration to focus again on its crypto policy and what it was really going to be and demand.
Without a doubt what is going to be signed is a huge win for the crypto industry and really eases a ton of fears that were hampering the market. Today. Wednesday, March 9th, the President will sign an order that will instruct several different departments and agencies to commence reviews over the industry and how the US should not only regulate but also DEVELOP the industry. This last part is key because the previous talk has always been about regulation and did not focus on the development and further utilization of this technology.
This Executive Order WILL NOT include any new rules or regulations which is better than anything I could have thought of. Now it is far from perfect and that can be witnessed by the fact that this order will really repeat something that the Federal Reserve is already doing. The Boston Federal Reserve and MIT have been working on a study about a CBDC called the Hamilton Project and its first paper was actually released at the end of last year. The President's order though instructs the Treasury Department to look into the potential risks and rewards of a US CBDC. This isn't something that the Treasury Department would be in charge of as it would fall under the Federal Reserve so this is kind is pointless but regardless it will happen.
It might not be popular to say but this Executive Order does have a ton of benefits. Since it does not issue any rules or requirements it means that these people in Congress and these departments might finally read the reports and thus act accordingly. While crypto does appear to really be making the strides it needs to it is important to make sure that it does not cause the collapse or huge issues with the current system. Disruption is great unless it causes people to lose their money, homes, jobs, etc. which is why I expect to see both financial systems end up working side by side at one point.
I think we can all agree that basic consumer protections will be important to help onboard the large part of the population onto crypto and so finding out how to best provide these while maintaining innovation which is in the order is key. This will help provide a ton of stability by erasing the fears of a government crackdown and some of the areas this order focuses on like stability will benefit from this. Finally, the government will be forced to acknowledge the public ledger that crypto uses and how this prevents transactions from being hidden which has been something the Democratic Party has been hammering in hearing the most recent example is Senator Elizabeth Warren's questioning of Federal Reserve Chairman Jerome Powell.
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