US Executive Crypto Order: What Does it Mean?

Earlier this month, on March 9th, 2022, U.S. President Joe Biden signed the United States’ first of a kind executive order on cryptocurrency regulation. The order doesn’t lay out any specific positions, rather it directs federal agencies to coordinate their approach within the digital asset sector. The release of this executive order DID NOT include any new regulations for cryptocurrency companies to abide, rather the order was intended to direct federal agencies to do a better job of communicating their work regarding digital assets.

What did this Order Contain?

The executive cryptocurrency order, which has been in the works since October of 2021, defines six key priorities for the administration to follow. These six key priorities are:

• Protecting U.S. interests
• Protecting global financial security
• The prevention of illicit uses of digital assets
• The promotion of responsible innovation
• Financial inclusion
• U.S. leadership

How is this Order Being Viewed by the Public?

Although there’s been some apprehension within certain parts of the crypto community, the public response to the cryptocurrency executive order was by and large positive. The fact that the government drafted and enacted this order shows that the growth of the cryptocurrency and web3 space is being taken seriously by the U.S. The United States has been at the forefront of many technological advancements over the years, including the current web2 internet, and this order makes it clear that the U.S. aims to remain at the forefront of technological advancement into the web3 era.

CBDCs

Much of the U.S. digital asset executive order is centered around the research and deployment of a U.S. central bank digital currency, which could serve as an asset for some investors. For those who are unfamiliar, central bank digital currencies, or CBDCs are a digital asset class that borrows technology from cryptocurrency, and acts as a centralized and government controlled digital equivalent to fiat currency. CBDCs are being implemented all over the world, and the U.S. digital asset executive order essentially gives the treasury the green light to research and develop a digital equivalent to the U.S. dollar.

Conclusion

This is a big step forward for the future of cryptocurrency innovation and development within the United States. More regulation regarding digital assets may seem undesirable to some, however it will be vital to the development of web3 now and in years to come!

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