The White House on Wednesday unveiled the key points of U.S. President Joe Biden’s planned executive order on crypto law. The order will recognize and regulate digital assets in the country, and will also promote the development of a central bank digital currency (CBDC).
The order will focus on protecting investors, mitigating illegal activities through crypto and also spur the development of digital payment systems, according to an announcement from the White House. Biden is set to sign the order later in the day.
The order marks the first time the U.S. government has addressed crypto law at a federal level. While the announcement did not outline any particular regulations on cryptocurrencies, it instructed federal agencies to cooperate in developing the space.
The move comes amid growing focus on cryptocurrencies from regulators, in wake of the Russia-Ukraine conflict. Not only did the conflict mark the first time a country has officially sought crypto donations, but it also raised concerns over sanctioned entities possibly using crypto to bypass restrictions.
This is a major point in Biden’s planned order, which seeks to establish an international framework to reduce the risk posed by under-the-table transactions using digital assets.
The order will also support the development of a CBDC by the Federal Reserve, and seeks to promote co-development with other countries. China was among the first countries to roll out a digital currency this year, with its launch of the digital yuan during the Winter Olympics.
Treasury report on the “future of money”
The order said that the Secretary of the Treasury, Janet Yellen, will produce a report on the “future of money” and payment systems, particularly in the context of growing demand for digital currencies.
Details from Yellen’s statement, which had leaked on Tuesday, matched the information released from the White House. Yellen said the Treasury will collaborate with several government bodies, as well as consumer and investor protection groups in producing the report.
The order dispels concerns that the government will take a tough stance against crypto, given recent criticisms against the sector from Senators including Elizabeth Warren. Markets had reacted positively to the leaked details on Tuesday, with Bitcoin surging more than 6% past $42,000.
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