On Wednesday, U.S. President Joe Biden issued the long-await executive order
🥁 on digital assets and the crypto community breathed a sigh of relief. 😮💨
International sanctions have prompted urgent calls for regulation of cryptocurrencies, so many in the industry felt this EO would introduce new sweeping measures
to crackdown on digital assets. 🔨 🚫
The framework to guide the industry is actually very encouraging. It focuses on six key areas:
- Consumer and investor protection
- Financial stability
- Illicit activity
- U.S. competitiveness on a global stage
- Financial inclusion
- Responsible innovation
Even U.S. Secretary of the Treasury Janet Yellen — who is often critical of cryptocurrency — commended Biden
👍 for his “coordinated and comprehensive approach” to digital asset policy.
Rather than try to snuff out 🕯️ this asset class, America seems to recognize the industry’s potential and is working to build 🧑🏭 a framework that will hopefully make sense. The EO highlights innovation as a key priority rather than an afterthought. This is what enables platforms like Ethereum to grow 🌻 and thrive as the bottom-up composability of these networks is what leads to great technological discoveries. Although the framework is promising, the devil 😈 is always in the details and it remains to be seen how much room the industry will have to flourish.
We’re not going to see things change overnight, but at least Americans now have a roadmap 🗺️ to go by. In order to create appropriate guidelines, it will be essential for industry players to have a seat at the table to help officials understand network activity, while ensuring the new rules don’t impede on innovation. ⚖️
The American regulatory system is complicated 🤔 — something we discussed on our podcast
with U.S. SEC Commissioner Hester Peirce last December. In the U.S., they like bucketing 🪣 assets but the crypto industry is not so cut and dry. Different products provide different economic services, with the underpinning 📌 of an entire financial system. This is something they will have to keep in mind in order to develop an effective framework.
What does this mean for Canada? 🍁
Not sure yet! We’re hoping the new executive order lights a fire 🔥 under Canadian officials to properly regulate the space. Considering Ethereum got its start in Canada, we risk falling behind 🥀 other nations when it comes to being a leading country at the forefront of change and technological advancement.