President Joe Biden signed an executive order on Wednesday asking federal agencies to work together to regulate cryptocurrencies and other digital assets. Cryptocurrency Bitcoin rose over 9% on Wednesday to about $42,300 according to Coin Metrics. For years, authorities and watchdogs like the SEC, CFC, and FSOC have struggled to adapt old legal frameworks to the new markets for Bitcoin, Ethereum, and hundreds of other tokens and assets.
- About 16% of American adults have invested, traded or utilized cryptocurrency.
- “We need a comprehensive, all-of-government framework to address the emerging risks and opportunities that digital assets pose,” said White House economic advisor Brian Deese.
- Cameron Winklevoss, president of bitcoin exchange Gemini Trust, called Biden’s executive order is a “watershed moment” for the industry.
Cameron Winklevoss, president of crypto exchange Gemini Trust, wrote Wednesday that Biden’s executive order is a “watershed moment” for the industry. “It paves the way for thoughtful national crypto regulation that will allow builders to build onshore and ensure that the US remains a leader in crypto,” he wrote.
“It is important for various agencies (federal and state!) and Congress to work closely together,” Winklevoss added. “The WH recognizes the importance of overarching public policy and national interest rising above narrow jurisdictional battles to best develop a coherent and cohesive framework.”
On Tuesday, the Treasury Department said its financial literacy arm would work to develop consumer-friendly materials to help people “make informed choices about digital assets.”
“History has shown that, without adequate safeguards, forms of private money have the potential to pose risks to consumers and the financial system,” said Nellie Liang, undersecretary for domestic finance.
Biden’s executive action gave a boost to bitcoin and cryptocurrency equities on Wednesday.