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President Joe Biden’s Executive Order on Digital Assets, signed on March 9, has received wide acclaim in the crypto industry – many financial experts view this unified approach to crypto regulation as a long-awaited recognition and breakthrough since a long time.
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For example, Cameron Winklevoss – Chairman of Gemini – called “the first-ever whole-of-government approach to addressing the risks and harnessing the potential benefits of digital assets and their underlying technology” as a “watershed moment” via a LinkedIn post. Winklevoss’ message went on to suggest that Biden’s EO paves the way for thoughtful national crypto regulation – regulation that will allow builders to build ashore and ensure the US remains a leader in crypto. .
Many experts have noted that this is also a very welcome and positive development for Bitcoin. Brock Pierce, president of the Bitcoin Foundation, told GOBankingRates that the executive order will make investors’ Bitcoin safer “because the government recognizes that it needs to take a thoughtful and coordinated approach to embracing cryptocurrency innovation. and that it will not, and probably will not be able, to seize Bitcoin and other cryptocurrency assets.
“The executive order is very positive in that it showed an open-minded approach and a framework for government agencies to work with entrepreneurs, investors and other stakeholders in the cryptocurrency space to adopt it,” Pierce added.
A similar sentiment was also described in an NYDIG report, which said the order “puts to bed” the idea that the US government has a vested interest in banning Bitcoin and other digital assets.
Greg Cipolaro, global head of research at NYDIG, told GOBankingRates that the order “demonstrates the White House’s willingness to bring thoughtful and coordinated regulation to the asset class, which the industry has long sought. The administration recognizes that the industry is here to stay and can be a source of technical innovation in the United States given the right safeguards.
Another key point of the EO is its focus on the potential benefits of a US central bank (CBDC) digital currency. CBDCs have already been discussed by government officials, primarily in conjunction with the release by the Federal Reserve Board – in January – of its long-awaited discussion paper regarding the pros and cons of a CBDC. However, the guidelines for any CBDC have been vague so far, and the document has not promoted any policy outcome.
Biden’s latest EO, however, says “urgently place research and development of a potential CBDC in the United States, if issuance is deemed to be in the national interest,” according to a White House preview.
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Ari Redbord — a former Treasury Department senior adviser and now head of legal and governmental affairs at blockchain intelligence firm TRM Labs — told GOBankingRates that the wording of the executive order regarding a CBDC is interesting for a number of reasons.
“First, unlike the Fed’s January paper on CBDCs which has pros and cons, the order calls for ‘urgency.’ White House calling for movement,” Redbord said. “Perhaps the most extraordinary element of the order is that it frames discussion of the CBDC as a matter of national security and national interest calling on states United to lead the digital space race to ensure a global digital currency is consistent with democratic values. . It was a clear call to China and its Digital Yuan project.
Indeed, the order states that a U.S. CBDC interoperable with CBDCs issued by other monetary authorities could facilitate faster, lower-cost cross-border payments and potentially spur economic growth, support continued U.S. centrality to the within the international financial system, and help protect the unique role the dollar plays in global finance.
Linda Jeng – a visiting financial technology scholar, assistant professor of law at the Institute for International Economic Law at Georgetown University Law Center and lecturer at Duke Law School – told GOBankingRates that “we are finally catching up with other G20 countries in the development of a digital asset strategy.
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“I hope this is a first step towards a broader national data strategy that considers a privacy framework for consumer data rights when we use digital assets and CBDCs,” he said. she stated.
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