Joe Biden instructed to study the consequences of integrating the crypto industry into the US financial system

The President of the United States ordered federal agencies to coordinate efforts to develop rules for regulating cryptocurrencies.

Joe Biden on March 9 issued a decree on the development strategy of the crypto industry. The fact sheet accompanying the decree states that nationwide efforts to regulate the crypto industry should focus on consumer protection.

“The executive order recognizes that our assessment of the risks and potential benefits of digital assets must include an understanding of whether the financial system is able to meet the current needs of consumers in a way that is fair, efficient and inclusive,” explains a source close to the White House.

Users are now facing “legacy payment infrastructure” that may be slow or not working at all. The source says there is an understanding that this is especially true for international transactions.

In his executive order, President Biden instructs regulators and lawmakers to outline a strategy for issuing a digital currency by the Central Bank, “if this decision is in the national interest.” In addition, the Fed and other agencies will need to study the possible risks of introducing such a state-owned cryptocurrency in terms of national security, human rights and financial inclusion.

The US presidential administration was about to issue an executive order to regulate digital assets back in February. Recently, U.S. Senate Finance Committee Chairman Ron Wyden urged lawmakers to protect innovation in the cryptocurrency industry despite government concerns that digital assets could be used for fraud and money laundering. In January, it was reported that the administration of President Joe Biden would mention the crypto industry in a memorandum on US national security issues and oblige federal agencies to develop regulations to regulate cryptocurrencies.

Source: Bits

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