Biden Incorporates Institutes To ‘Develop and Use’ Crypto – A Good Move?

President Joe Biden's executive order on cryptocurrencies aims to make it easier for the US government to monitor the $2 trillion digital asset market. 

In addition, the order includes instructions to protect users and reduce crime risks. The White House released an executive order on crypto signed by President Biden on March 9, 2022. 

The order directs federal agencies to investigate the risks and benefits of cryptocurrencies, which have grown in popularity among ordinary people and large financial institutions in the last year. 

The order affects all government agencies because the United States lacks a centralized cryptocurrency regulator.

Yes, it is. Biden's executive order devotes significant resources and thoughts to the threats to national security that digital assets pose. 

This includes money laundering and evasion of sanctions. It is unclear what changes came with the executive order in response to Russia's recent move to improve national security objectives and engagement.  

Still, as the various agencies work on the order's details, they are forced to consider how crypto and digital assets affect national security, foreign policy, and international sanctions in greater depth. 

As a result, those concerned about the role of cryptocurrency in this space will have more legal and administrative grounds to raise their concerns during the inter-agency process.  

The executive order outlines the Administration's plans for the future. It appears to boost the Federal Reserve's recent CBDC efforts. 

The order also gives the AG the authority to determine whether the Fed has the legal authority to issue a CBDC, which should be closely monitored.  

Also, the order strikes a balance between the potential benefits and risks of digital assets. The situation in Ukraine has likely altered the assessment of these risks. 

This elevates national security and foreign policy concerns to the forefront of global system development.

Cryptocurrency regulation is a contentious issue. However, many experts believe investors in cryptocurrencies should welcome it. 

To begin with, the cryptocurrency market is volatile, but more regulations help keep it in check.  Tally Greenberg, the director of business development at Allnodes, a platform that provides hosting, monitoring, and staking services, believes that regulators should make and implement regulations to stabilize the market further. 

This is beneficial because it keeps investors safe.  Despite this, many crypto enthusiasts are vehemently opposed to any new regulations. 

They claimed that it would retard innovation and contradict the spirit of cryptocurrencies which have a basis on the concept of decentralization. 

The fact that digital currencies such as Bitcoin have no backing from any institution or government authority is a big draw for these individuals. 

As a result, any new regulation would threaten the system's decentralized nature, which is a feature, not a bug. 

According to Aaron Klein, a Brookings Institution senior fellow in economic studies, new regulations could protect long-term investors and prevent fraud in the crypto ecosystem. Furthermore, it could provide clear guidelines to help companies innovate in the crypto economy. 

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