Long-awaited Executive Order from US President Joe Biden released

It’s been in the air for a while, but now it’s finally here. The so-called ??????Executive Order on Ensuring Responsible Development of Digital Assets??????? by US President Joe Biden. The executive order sets out the national strategy for bitcoin and crypto.

But what is an executive order executive order In the United States, an executive order is a directive by the President of the United States that manages operations of the federal government. right now? First of all, it is good to know that the US Constitution does not say anything about this. An executive order therefore has no constitutional basis and can, in theory, contain anything.

It is clear that an executive order is not a law and therefore does not require the approval of the US Congress. In many cases, an executive order is directed at civil servants and therefore has an internal effect. In the Netherlands we would speak of a policy rule.

Sometimes an executive order also has external effects. This was the case with the travel ban travel ban The Trump travel ban (labeled the “Muslim ban” by critics) denotes a series of executive actions enacted by Donald Trump as President of the United States in 2017. of former US President Donald Trump.

Executive Order

The turbulent growth of bitcoin and crypto has also not gone unnoticed by the White House. The executive order notes that about 16% of adult Americans ??? about 40 million people ??? have interacted with bitcoin or crypto. The developments regarding CBDCs, or digital central bank money, are also referred to in the executive order .

The above reasons are the basis of the executive order. That points to opportunities to maintain US leadership in the financial system and promote technological development. Innovation should be supported, but certain risks should also be covered.

But what risks then? Broadly speaking, the executive order focuses on consumer and investor protection, financial stability, preventing money laundering and terrorist financing, maintaining American leadership in the financial system and competitiveness, financial inclusion and responsible innovation. The latter most likely refers to safeguarding climate risks.

Biden has asked various regulators and government agencies to further investigate the main points. Various reports will therefore be issued within 180 days, which should lead to a well-considered legislative proposal.

The executive order shows that Americans see bitcoin and crypto as a legitimate and potentially important part of the economy and society. They want to take a leading role and embrace innovation, but at the same time want to limit the risks. The approach of the Americans seems to be different from that of the European Union. In Europe, the focus seems to be more on potential risks than opportunities.

New regulations are also on the way in Europe. Read more about the European regulation MiCA here.

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