Biden Issues Executive Order on Cryptocurrency

MAR 8 2022·Updated DEC 21 2022

Story

Image credit: Chip Somodevilla/Getty Images [via Business Insider]

The Facts

Biden signed an Executive Order on Wednesday morning aimed at unifying the US govt's oversight of the rapidly growing cryptocurrency market.
Reuters
While many speculated that the move was intended to crack down on the potential for Russians to use cryptocurrencies to evade sanctions, the order was planned long before the invasion.
Business Insider
The EO includes not only regulatory measures, but also an order for the Federal Reserve to study the potential risks and benefits of creating a US Central Bank Digital Currency (CBDC), or digital version of the US dollar.
Reuters
The order set a 180-day deadline for reports on the "future of money" from the responsible agencies.
One America
Some 14% of Americans had already invested in digital assets as of 2021, and the value of cryptocurrencies surged past $3 trillion last year before a sharp contraction in 2022.
One America
Crypto traders seemed to take the move as a positive sign: the value of bitcoin, the largest cryptocurrency by total market value, surged on Wednesday.
Reuters

Sources Split

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The Spin

Narrative A

The Biden administration is finally embarking on a thoughtful and constructive approach to the exciting new industry, one that will allow the US to remain at the forefront of innovation in the cryptocurrency space.

CNBC

Narrative B

Biden is only analyzing benefits at this point. He must take a measured and cautious approach to these new financial technologies, which--in the absence of regulation--pose dangers to consumers and an existential threat to the stability of global financial markets.

The Hill

Narrative C

Nine countries have already launched a CBDC and 16 others--including China--are in the development stage. The status of the USD as global reserve currency is at stake if the US doesn't hurry up and establish a digital dollar.