Note that this is not the first time US authorities have addressed the topic of cryptocurrencies. In particular, in February 2022, members of the government called the recognition of Bitcoin as an official tender in El Salvador "a threat to the US financial system". As the senators said at the time, the mass use of cryptocurrencies could weaken the potential for sanctions imposed by the US. Read more about the viewpoint in a separate piece.


How will crypto be regulated?

The executive order focuses exclusively on crypto, which in itself is unprecedented in US legal practice. It directs federal agencies to better inform their work in the digital asset sector. However, the executive order did not announce any new regulatory rules that crypto-related companies must follow.

One Biden administration official told reporters in an interview that the new regulations are about limiting the risks of the growing crypto industry to the US financial system. Here is his quote, published by the news outlet Coindesk.

Digital assets could provide new opportunities for US innovation and competitiveness, as well as promote financial inclusion. Innovation has been central to American history and our economy, creating jobs, new industries, supporting our global competitiveness and leadership.


This rejoinder is very important because since the early years of crypto, bankers and officials have been actively vilifying the reputation of digital assets. They regularly reminded us that coins are used by crooks, criminals and drug traffickers, which would clearly not be welcomed by ordinary citizens to connect with them.

Now, however, the situation has changed dramatically. Against the background of the massive development of decentralised financial platforms, the authorities have clearly realised not only their advantages, but also the futility of struggling to spread such services. And this is a signal to other investors, who were afraid or simply have not yet had time to get involved with the cryptocurrency niche.


US President Joe Biden

The document passed by the government will reportedly identify six “key priorities” for the Biden administration: protecting US interests, protecting global financial stability, preventing the illegal use of cryptocurrencies, promoting “responsible innovation”, financial inclusion and US global leadership.

Part of the executive order also directs the US Treasury Department to prepare a report on “the future of money and payment systems”. The report will analyse the impact of cryptocurrencies on economic and financial growth, financial inclusion, national security and “the extent to which technological innovation will impact this future”. The report should also answer an earlier question about the extent to which the current financial system is or is not meeting the needs of consumers.

Screenshot of part of the decree

Treasury Secretary Janet Yellen clarified in her latest statement that the planned report will complement the Treasury Department’s strategy to analyse the crypto industry. Here’s her rejoinder.

The ministry is already working with the President’s Working Group on Financial Markets, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) to examine and make recommendations on one particular type of digital asset – stabelcoins.

US Treasury Secretary Janet Yellen

The executive order also asks the agencies to assess how the US could issue its own central bank digital currency (CBDC) “if its issuance is deemed in the national interest”. More than a hundred countries are already considering creating their own CBDCs, with options for their potential use covering both domestic transactions and international transfers, according to a presidential administration official.

Overall, a direct order from a close circle of the US president to “get involved in cryptocurrencies” could be seen as a positive development for the entire industry. In such an environment, government agencies will create the right ecosystem to protect investors, which will attract more big players to the digital asset market. And the possible launch of the digital dollar will be an even clearer sign for investors who have been hesitant about the benefits of cryptocurrencies and other digital assets.


We believe that the final US government document is much more positive than originally thought. It presents cryptocurrencies in a positive light, in addition to recognizing the ability of decentralized assets to foster innovation within the country. Obviously, with this message, the number of investors in the niche will only increase, and this will encourage further development in the blockchain space.


What do you think about this? Share your opinion in our Millionaire Crypto Chat. There we will discuss other important topics related to the blockchain and decentralisation industry.