The short: In a significant milestone for the cryptocurrency industry, President Biden signed an executive order to ensure the responsible development of digital assets.
What’s more: Biden’s Executive Order sets the stage for a framework for cryptocurrency oversight and regulation. The order establishes a 180-day timeline for a “framework for enhancing the United States’ economic competitiveness in, and leveraging of digital asset technologies.”
Big picture: It’s a big deal and a validating moment for crypto. The order cites crypto’s explosive growth with a $3 trillion market cap, acknowledging that it is now mainstream. Per the order, this approach to crypto aims to ensure the US retains currency sovereignty and global dominance, fostering competitiveness and investor protection.
One for Ukraine: Ukraine received $100 million in cryptocurrency donations – according to the country’s Deputy Minister of Digital Transformation. Crypto has afforded the country a much-needed lifeline and allowed it to buy weapons and relief supplies for its distressed population.
President Biden’s order will expand international cooperation on combating illicit financing. Russian officials and oligarchs seeking to evade financial sanctions using cryptocurrency are likely targets of this order.
One significant development: Payments company Stripe is returning to crypto after a four-year absence. Stripe expressed doubts over bitcoin’s effectiveness as a payment medium in 2014, leading to its crypto services shutdown. Announcing its return, the company said in a blog post that its “optimism for the future of crypto was not unfounded.” So, they’re back with a vengeance.
Final thoughts: It took them a while, but Biden’s government is joining countries like India, El Salvador & Australia in regulating crypto. It’s a good sign. The Executive Order means crypto would be an essential part of the US economy, which would help crypto investors sleep better at night.