U.S President Joe Biden has signed an executive order to review the country’s approach to crypto. Experts suggest that this could lead to the legitimization of crypto as an assets class. If this occurs, investors could finally have a framework for dealing with crypto leading to its widespread adoption.
Various agencies are to submit reports on their findings
The executive order could create national guidelines for cryptocurrency. Moreover, the president has asked federal regulators to look into the opportunities and risks in the cryptocurrency sectors and how to regulate them.
Biden has asked the Treasury Department and other agencies such as the State and Justice Departments to submit the results of their investigations by September. The Biden administration has asked that their report include how a digital dollar could increase financial inclusion and its impact on economic growth.
The administration has also asked the Federal Reserve to focus on its research on a digital dollar. Additionally, Biden has told the agency to investigate how the country could implement a U.S Central Bank Digital Currency (CBDC).
According to Amplify Transformational data sharing ETF’s portfolio manager, Dan Weiskopf, the order indicates that the U.S government acknowledged the changes cryptocurrency could make. By issuing the executive order, President Biden is legitimizing the currency.
Weiskopf adds that Federal regulators could start by defining cryptocurrency as the term is too broad. Furthermore, many investors struggle to know if their digital assets are utility tokens or securities.
Government involvement with cryptocurrency is facing some opposition
However, this move has been met with criticism from Maximalists or Bitcoin purists. This group argues that government involvement is against the foundation of bitcoin, which is supposed to be an alternative form of payment that has no ties to any government.
Despite this, purists must consider that Bitcoin and other cryptocurrencies could only be successful with increased user adoption. In addition, people need to know how to assess cryptocurrency. This is brought about by governments getting involved.
Weiskopf hopes that purists will become more open to the government getting involved in cryptocurrency to increase the currency’s utility. It would also increase its acceptance by interested parties.