After months of anticipation, the Biden administration finally signed and released the long-awaited crypto executive order. According to the Executive Order on Ensuring Responsible Development of Digital Assets, multiple government departments in the United States are required to coordinate and consolidate policies on a national framework for crypto.
The majority of people in the cryptocurrency business believe the executive order is a significant step in the right direction.
Since its announcement in October, President Biden’s executive order has created a great deal of anxiety in the crypto sphere. Most people expected the directive to result in a multi-pronged regulatory crackdown against crypto assets. Industry leaders have been pleasantly surprised, to say the least.
Importantly, the directive enables the development of a coordinated government approach to preventing the use of cryptocurrency in unlawful operations, all while encouraging innovation and reinforcing the United States’ technological leadership in this quickly emerging field.
Circle co-founder and CEO Jeremy Allaire praises the Biden administration’s decision to employ a “whole-of-government approach to simultaneously exploit benefits while managing and mitigating inherent dangers in responsible innovation.”
The executive order, according to Brad Garlinghouse, CEO of blockchain payments firm Ripple, signals a critical inflection point and makes it obvious that “crypto is here to stay.”
Other analysts feel the executive order could assist crypto miners in addition to providing regulatory clarity in the crypto business. Jonathan Peterson, a strategist with the American international investment firm Jefferies, stated in a client note that they feel that the fact that the United States government is now more formally acknowledging, working with, and ostensibly backing the digital asset business would benefit public crypto mining companies.
Peterson noted the contrast between the United States and China, which put a blanket ban on cryptocurrency mining last year, forcing miners to relocate to friendlier states. The EO, according to the analyst, is just another indication that the regulatory environment in the United States is increasingly supportive of miners and cryptocurrencies.