On March 9, 2022, President Joe Biden signed an executive order outlining a government approach to address the development of Cryptocurrencies and Digital Assets across the US financial system. The cryptocurrency market capitalization surged from $14 billion just five years ago to over $3 trillion at the end of 2021. It is estimated that 16% of American adults have invested in, traded, or used cryptocurrencies and digital assets.
The rapid rise of this asset class was bound to draw attention from the federal government sooner or later. The main contents of the executive order focus on six broad areas:
- Consumer and Investor Protection
- Financial Stability
- Illicit Activity
- US Competitiveness on a Global Stage
- Financial Inclusion
- Responsible Innovation (particularly regarding climate impacts)
Central Bank Digital Currency (CBDC)
One of the most interesting aspects of this executive order is the administration’s intention to explore a digital version of the US dollar (referred to as Central Bank Digital Currency, or CBDC). While the Federal Reserve recently released a report detailing the advantages and disadvantages of such a currency, it did not officially take a stance on whether a CBDC should be formally adopted.
Depending on the outcome of the review (expect the review to take about a year) it had the potential to bring greater clarity to the cryptocurrency markets which in turn could make Cryptocurrency investing attractive to a larger pool of investors.
You can find an official fact sheet from whitehouse.gov on the executive order at this link, and the entirety of the order at this link.
Learn more about Cryptocurrency
If you’d like to learn more about Cryptocurrency and how you can incorporate digital assets into your retirement portfolio, visit our Crypto Club page. Alternatively, feel free to schedule a call with a Cryptocurrency Specialist.
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