The cryptoverse was set ablaze when an Executive Order from President Biden was issued regarding digital assets in the U.S. The Order ‘Ensuring Responsible Development of Digital Assets’, provides a foundation for studies into new technology and more specifically into cryptocurrencies and blockchain technology.
A move to regulate crypto?
The Executive Order does not provide a specific game plan. It is instead only a call to action. The policy statements laid out in the order are mostly non-controversial. For example, the order states that ‘we must protect consumers, investors and businesses in the United States,’ but does not provide specific guidance on how this will be achieved. The Order instead requires a set of reports which will be an interagency effort.
The digital asset industry in the US has grown rapidly over the years. In 2016, the industry had a market cap of $18.86 billion AUD. This grew to just over $4.04 trillion in November 2021. The industry withstood the global economic downturn that resulted in from the lockdowns due to the pandemic and continues to show growth despite the current global political climate.
It is therefore not surprising that the government is seeking ways to regulate and perhaps even benefit from the crypto industry. The White House has made calls previously for experts from different agencies to analyze cryptocurrencies and submit reports on their findings. The recent Executive Order only seems to be a step towards the government’s goal of regulating the industry.
What does the US government think of Crypt?
This is a question that many are seeking answers to. Despite holding a hearing with several influential players in the crypto verse, the government position on crypto still isn’t clear. Some would even say that their position remains ambiguous when it comes to regulating the crypto industry.
Crypto is already playing a major role in the US economy with many people preferring to invest in digital currencies rather than traditional assets. Some government officials have even accepted salaries in digital currencies. Francis Suarez, the Miami mayor, has been known to actively promote the use of Miami Coin. Miami Coin is a cryptocurrency that was developed to give the residents of the city an opportunity to earn yield in Bitcoin. Republican lawmakers in particular have eagerly embraced cryptocurrencies. Many of them have been vocal about the need for regulating the industry.
The crypto world isn’t against regulations either. Many like the President of FTX.US, Brett Harrison, agree with the push for regulations. According to Harrison, the Executive Order is a move in the right direction. A call for research and the submitting of reports would mean that the government would be better able to understand the areas that need regulation and the areas that don’t.
Many other countries are experimenting with cryptocurrencies. Some of these countries are looking towards making digital currencies legal tenders. Could the US be headed in that direction too? The crypto space will have to wait and see.
