The crypto world waited with anticipation to find out what Joe Biden’s executive order would say. It has been on the mind of everyone since news leaked in October 2021 that the White House was working on something crypto related. Fud had been circulating everywhere over what this one announcement could do to a market that exists in constant volatility. There was reason to be concerned, as regulation and tax implications can instantly shift United States investments, causing a ripple effect as investors lose confidence in the health of the current market.
Last night, news began to leak of what was in the executive order, and the crypto market responded in a positive way, albeit momentarily — with gains of 130 billion dollar in hours! Bitcoin climbed up to $42,000 upon the news and Ethereum followed by trading up to $2,700. The rest of the market also reacted positively.
While many were worried about extreme regulation, the executive order painted a picture of how crypto can be an asset to US authorities and citizens. The order states that the US “must maintain technological leadership in this rapidly growing space, supporting innovation while mitigating the risks for consumers, businesses, the broader financial system, and the climate.” Crypto exists for innovation, and any legitimate project would welcome increased transparency to make investing safe for all.
It went on to list 6 critical keys:
- consumer and investor protection
- financial stability, illicit finance
- financial inclusion
- and responsible innovation
- US leadership in the global financial system and economic competitiveness
In a statement from Secretary of the Treasury Janet L. Yellen, shortly after the order was released:
“This approach will support responsible innovation that could result in substantial benefits for the nation, consumers, and businesses.”
It appears as though the United States is choosing to support cryptocurrency moving forward. The executive order mentioned a central bank digital currency, further studies on macro and microeconomics, and investor protection. That sounds like a country that truly wants to be involved. The founder of FTX, Sam Bankman-Fried, described the EO as “constructive,” which in crypto is a compliment.
Skeptics will point to this news and say that the government is waiting to reduce anonymity by forcing centralization and finding the right moment to increase taxes to raise additional revenue for themselves. Time will tell how this will play out, but the market responded enthusiastically to the long-awaited official statement.
At the time of publishing this article, the market has corrected itself somewhat, returning back to pre Executive Order levels.
