U.S President, Joe Biden has signed a new Executive Order for the regulated activities of crypto trade and other accompanying innovations of blockchain technology. In a briefing by the President, he called on the government regulatory agencies to check and analyze the dangers, advantages, and consequences of handling cryptocurrency.
This is a long-awaited point of interest for the public, especially with the growth rate of the crypto industry. President Biden stated the executive order has carefully curated outlines which included policy, objectives, coordination, and policy actions related to U.S central bank digital currency (CBDC).
Measures to protect consumers, businesses, and investors, financial stability actions, actions to limit illicit finance, international cooperation, and others are also sections of the outline.
Upholding Consumer And Investors Protection
The president acknowledged how important it is to prioritize the security of the consumers and investors in the crypto market. The industry has evolved from its traditional practices to being a globally recognized sensation which requires a higher and firmer set of regulations to standardize its operations.
There is an urgent need for users to be shielded from the inconsistency and instability of the market while investing. Not relegating the financial stability of the US and global economy, crypto exchanges and users should be subjected to obeying set standards.
According to Biden, the United States is interested in developing a system that accommodates responsible financial innovations, permits a larger percentage of secured and affordable financial services while encouraging payment systems and fund transfers across borders.
To achieve the executive order, President Biden appointed Jake Sullivan, the Assistant to the President for National Security Affairs, and Brian Deese, Assistant to the President for Economic Policy who also doubles as Director of the National Economic Council.
They will work alongside secretaries and other administrators of key government parastatals to implement and oversee the executive order.
Anti-Money Laundering Scheme Emphasized To Avoid Sanction
Plans to alleviate the risks associated with illegitimate funds and national security caused by the misappropriation of cryptocurrencies are also being put into consideration. The government will insist that crypto firms set up an anti-money laundering scheme (AML) to act as a regulator in this regard.
Some crypto firms have been under investigation for eluding the AML scheme. For firms found guilty, trading activities will be halted until an authorized license is issued.