• Executive order called on the government to examine the risks and benefits of cryptocurrencies
• Biden administration also wants to explore potential of digital dollar
President Joe Biden signed the long-awaited executive order on Wednesday for government agencies to analyze the issues surrounding the crypto market and create a strategy for digital assets.
“Fundamentally, an American approach to digital assets is one that encourages innovation but mitigates the risks to consumers, investors, and businesses, broader financial stability, and the environment,” said Brian Deese, director of the National Economic Council, and Jake Sullivan, Biden’s national security advisor, in a Wednesday statement.
Some details of the executive order were prematurely released on Tuesday, with Treasury Secretary Janet Yellen’s statement on the government website.
Later Yellen’s statement was pulled down from the Treasury department’s website.
At the time of reporting, Bitcoin was trading at $42,407.14, nearly 9% higher and Ether gained almost 7% to $2,773.16.
Developing policies around cryptocurrencies
The order directs the U.S. Federal Reserve to research and potentially develop Central Bank Digital Currency (CBDC), or the nation’s own digital dollar.
The White House Fact Sheet also states that Biden has asked the Treasury Department to develop guidelines for trading and the use of cryptocurrencies that will help Americans to avoid fraud or market volatility.
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Cryptocurrencies have seen explosive growth in recent years, surpassing a $3 trillion market cap last November and up from $14 billion just five years prior. Surveys suggest that around 40 million Americans or roughly 16% of the adult population have invested in, traded, or used cryptocurrencies.
The Treasury Department will also do further research on the potential role of digital assets and blockchain in future payment systems.
Picture Credit: Bitcoin News