Politics

Joe Biden to sign executive order to study cryptocurrencies and digital assets

President Biden is slated to sign an executive order Wednesday directing the federal government to study the regulation of cryptocurrencies and central bank digital currency.

The order has been in the works for months and would seek to get a better handle on the risks and benefits of the digital assets, which have spiked in popularity, and explore the possibility of a digital dollar.

“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 said in a statement.  “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 order tasks the U.S. Treasury and other agencies “to assess and develop policy recommendations to address the implications of the growing digital asset sector and changes in financial markets for consumers, investors, businesses, and equitable economic growth.”

The Biden administration said the move is a response to the “explosive growth” in digital assets as the nation comes to grips with the rising popularity of digital currencies and ponders the creation of a U.S. central bank digital currency. 

“The Administration will continue work across agencies and with Congress to establish policies that guard against risks and guide responsible innovation, with our allies and partners to develop aligned international capabilities that respond to national security risks, and with the private sector to study and support technological advances in digital assets,” the White House said.

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