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Some experts have called it a watershed moment for the crypto industry as clear regulations will pave the way for institutions to join the market.
On Wednesday, March 9, US President Joe Biden signed the “historic” executive order for cryptocurrencies. Many market analysts believe that the US is planning to have an accommodative stand for crypto.
In his crypto executive order, President Biden has asked for the need to build strong and clear regulations for the crypto market. As result, he has asked the federal government to coordinate its efforts in regulating this space.
These regulations will help in ensuring consumer and investor protection and safeguard the American economy against external risks. Speaking to CNBC, Brian Deese, director of Biden’s National Economic Council said:
“We need a comprehensive, all-of-government framework to address the emerging risks and opportunities that digital assets pose. The financial innovation and the technological innovation underlying this boom has a lot of potential benefit, but the risks and the costs are increasingly becoming apparent. We need a 21st-century government structure to actually address this.”
The crypto market cheered the move on Wednesday but that remained very short-lived. Today, Bitcoin has corrected over 5% giving up most of its gains of yesterday and slipping under $40,000. The broader crypto market has also corrected more than 5% today.
US Treasury Secretary Janet Yellen has ensured full cooperation to work with other agencies. “Treasury will work to promote a fairer, more inclusive, and more efficient financial system while building on our ongoing work to counter illicit finance, and prevent risks to financial stability and national security,” she added.
Expert Views pon the Executive Order
Some of the market veterans have been calling this an important move for the entire crypto industry. Better and clear crypto regulations will pave the way for institutions to join. Thus, we can expect more liquidity in the crypto space going ahead.
Cameron Winklevoss, president of crypto exchange Gemini Trust called it a “watershed moment” for the crypto industry. He further added:
“It paves the way for thoughtful national crypto regulation that will allow builders to build onshore and ensure that the US remains a leader in crypto. It is important for various agencies (federal and state!) and Congress to work closely together. The WH recognizes the importance of overarching public policy and national interest rising above narrow jurisdictional battles to best develop a coherent and cohesive framework.”