Breakthrough Or Wolf In Sheep’s Clothing?

For months the crypto industry had been on tenterhooks as to how the Biden Administration would deal with the explosive growth in crypto assets. Many feared the president would take a regulatory sledgehammer to the industry.

Instead, the recently released executive order seemed to take a reasonable, responsible approach. But this segment of What’s Ahead warns that, despite plenty of soothing language, the order is actually a wolf in sheep’s clothing.

The list of agencies and government departments that will be involved one way or another in the crypto world is anything but reassuring. Among the many: the SEC, the FTC, the Federal Reserve, the Treasury Department, the Defense Department, the Labor Department, the State Department, the Commerce Department, the Energy Department, the Office of Management and Budget, and on and on. All this is a sure-fire recipe for strangulation by red tape.

One idea the order proffers is a Central Bank for Digital Currency. If that happens, kiss any remaining financial privacy goodbye.

The executive order also stresses the need for “sovereign,” i.e., “government” money. The upcoming battle over stablecoins, which could well challenge this currency monopoly, is just beginning.