According to a press release by the White House, U.S. President Joe Biden has signed an executive order directing federal agencies to collaborate in examining the risks and benefits of digital assets. “The rise in digital assets creates an opportunity to reinforce American leadership in the global financial system and at the technological frontier, but also has substantial implications for consumer protection, financial stability, national security, and climate risk,” the White House announced.
Joe Biden government asks federal agencies to assess the risks and benefits of cryptocurrencies.
“The United States must maintain technological leadership in this rapidly growing space, supporting innovation while mitigating the risks for consumers, businesses, the broader financial system, and the climate,” the press release noted. Specifically, the order outlines the approach of the Biden government towards “addressing the risks and harnessing the potential benefits of digital assets and their underlying technology.” The administration highlighted the aim to protect the U.S. and global financial stability and mitigate systemic risk by encouraging the Financial Stability Oversight Council to identify and mitigate economy-wide risks posed by digital assets.
U.S lawmakers continue to focus on crypto regulations.
The executive order has been in the works since last year, which marked an escalation in government rhetoric regarding regulation and enforcement in the digital asset industry. Lawmakers in the U.S. and other countries have been working on crypto regulations, including a U.S. Democrat proposal to bring digital assets within the existing wash-sale rule and the recent creation of a digital asset regulatory and licensing body in Dubai, also announced today. However, Biden’s order doesn’t address the recent economic sanctions levied against Russia over its invasion of Ukraine. It was signed amidst growing concern that digital assets can be used to bypass the measures.