Regulators, industry leaders respond to Biden's executive order on cryptocurrencies

U.S. President Joe Biden has signed the 82nd executive order since his inauguration in January 2021, directly proposing a regulatory framework for digital assets at a rare moment for Biden.

In a statement Wednesday, the White House said President Biden's executive order directed government agencies to explore the potential launch of a U.S. central bank digital currency and to coordinate and integrate policy on a national framework for cryptocurrencies. Many media outlets have previously reported that the US president initially planned to sign the executive order in February, but that plan may be delayed following Russia's military action against Ukraine.

Many industry leaders reacted by likening the executive order to a regulatory opportunity -- Biden has rarely spoken directly about cryptocurrencies and blockchain during his presidency. Reports that Russia may be using digital currencies to evade U.S. sanctions may be why Biden didn't wait any longer. The executive order mentions the risk of circumventing sanctions three times, which was echoed by White House National Economic Council Director Brian Deese and National Security Advisor Jake Sullivan:

"The approach outlined in the executive order will strengthen U.S. leadership in the global financial system and safeguard the long-term effectiveness of critical national security tools such as sanctions and the anti-money laundering framework."

President Biden signs infrastructure bill in November 2021

Lawmakers and regulators were quick to comment on the executive order. U.S. Treasury Secretary Janet Yellen, who may have issued a statement on the matter prematurely, said the executive order could "deliver substantial benefits to the country, consumers and businesses" while supporting innovation. ", while responding to industry risks. Senator Elizabeth Warren of Massachusetts, who often associates cryptocurrencies with illegality, said Biden is "right to be concerned about the risks" of cryptocurrencies, adding that the U.S. government needs to "enact strong legislation before it's too late." rule".

“While I agree with this president’s desire to combat money laundering and defend America’s national security, I think his executive order ignores the fact that the vast majority of digital asset users are law-abiding and working to make our financial system Get better," said Sen. Cynthia Lummis of Wyoming, a longtime bitcoin holder who has taken a pro-crypto stance on many pieces of legislation. “We need deliberate rules around stablecoins, and while I still don’t believe in the need for a central bank digital currency, I will continue to closely monitor the Fed’s work in this area.”

The Council on Crypto Innovation (CCI), a coalition of crypto companies originally formed in April 2021 that includes major exchanges such as Coinbase and Gemini, called the executive order a "comprehensive and informed" approach to cryptocurrencies. It also said it could lead to regulatory transparency, trusted financial innovation and a more inclusive economy.

“We look forward to working with regulators and policymakers in the coming months to develop sensible policies that will strengthen the U.S. as a global leader in crypto innovation,” the CCI said. “Collaboration is critical.”

President Biden has signed an executive order acknowledging the enormous potential of cryptocurrencies. This reflects the importance of cryptocurrencies to the American people. We share this president's commitment to trusted financial innovation and a fairer, more inclusive economy.

— Crypto Council for Innovation (@crypto_council) March 9, 2022

Jeremy Allaire, co-founder and CEO of crypto payments firm Circle, added:

"For those of us in the crypto community, IMHO, this executive order should be seen as the greatest opportunity to engage with policymakers on important issues. As we all know, the door is open for policymakers, and now, this It's a national topic in America."

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