The rising popularity of cryptocurrency has promulgated a new executive order by President Biden named “Ensuring Responsible Development of Digital Assets.” The content of the highly anticipated order has been praised by experts for its necessity and precise nature. Some have even termed it as “long overdue.”
With that said, let’s take a look at the effects President Biden’s executive order would have on the crypto market!
What Does The Executive Order State?
The general message from the executive order is the need for a balance between the positives and negatives of the crypto market, President Biden constantly calls for federal financial agencies to erect effective policies and regulations concerning critical areas of digital money.
The areas the order mainly focuses on correcting in the crypto industry are; buyer and investor protection, financial stability, illicit activity, U.S. competitiveness and dominance, inclusiveness in the market, and responsible innovation.
Governments often try to regulate crypto and Biden’s executive order is one of the vehicles through which this is done. Here are some of the effects of the new executive order has on the crypto-market
Biden Fueled Altcoin Rally
The regulations and protection the President’s order sought to provide for the crypto market were met with unwavering support and sparked hope of a bright future for the crypto market.
Consequently, there was a sharp rise in demand for cryptocurrency. For example, an altcoin like Ethereum climbed up by 7% and a smaller peer, Solana, rose by 5%.
You can partake in the benefits by buying and trading these coins with an online investing app.
It Will Protect Crypto From Illicit Attacks And Manipulation
Over the years, the crypto market has been faced with a number of manipulative activities and hacks that have significantly affected its customers and investors.
These illicit activities are often carried out by individuals.
President Biden’s new order notably seeks to mitigate all illicit trading activities in the crypto world by calling on government agencies to come together and make new laws guiding the market.
Asides from protection against fraud and manipulators, the new executive order seeks to offer stability in cryptocurrency and its market. It is known that digital currency prices constantly fluctuate, and sometimes the market may be turbulent.
It is for this reason that the President called on the Financial Stability Oversight Council to make regulations that would control the systemic instability in the crypto market. A smooth and reliable system would reduce the stress and array of emotions that come with owning cryptocurrencies.
The executive order has also sought to continue the dominance of the United States in the cryptocurrency revolution and acquisition.
It called for the Department of Commerce to lay down guidelines ensuring the U.S. continues to have a competitive edge over different countries in developing cryptocurrency.
Notably, for the competitive edge to be achieved, the order has sought to eradicate barriers that may hinder an ordinary man from entering the crypto market. It aims to promote equal access in spite of financial status and ensure that financial services are affordable to the masses.
Also, the interests of consumers and investors in the crypto market can be said to be the heart of the executive order. It promotes the dire need for investors to comfortably thrive in the crypto market by ensuring measures for adequate oversight or financial risks.
Introduction of the Digital Dollar
Still, in a bid to remain competitive in the crypto market, a significant part of the executive order that can be a massive change to the crypto and digital world is hinting at the establishment of a US central bank for digital currency and a digital dollar.
Overall the effect of the order will pave the way for the regulatory certainty required for widespread institutional adoption of digital assets. The new policies and laws, if implemented effectively, should assist in decreasing excessive and unnecessary price volatility.