US Government Seeks Safe Crypto Environment

On March 9, U.S. President Joe Biden, issued an Executive Order (EO) on securing a credible development of crypto assets in the country. Following the action, the White House released a comprehensive report containing policy recommendations and frameworks to address digital assets' risks and potential benefits.

Government agencies and stakeholders across the U.S. worked together to develop the report encompassing six fundamental areas of digital assets development identified in the President's EO. They include:

• Consumer and investor protection
• Promoting financial stability
• Countering illicit finance
• U.S. leadership in the global financial system and economic compactness.
• Financial inclusion
• Responsible innovation.

The policy recommendations, which tackle the factors above, indicate the government's interest in securing a favorable crypto environment for its citizens at home and abroad. The document provides a framework for responsible cryptocurrency development that paves the way for more innovation from private sectors in the global market.

Further, the report calls for measures to mitigate the risks of digital assets development, such as the increased enforcement of laws and regulations for cryptocurrency mining. Most importantly, it supports the Federal Reserve's ongoing Central Bank Digital Currency (CBDC) research.

Generally, the report outlines recommendations by experts to protect investors, customers, and businesses, promote financial stability and national security and ensure a safe crypto environment for Americans.

Refer to the Sept. 16 White House statement to read the full report.

Increased Financial Freedom

Before the White House statement, Head of Policy at Blockchain Association, Jake Chervinsky, said the U.S could either follow China by embracing a CBDC or promote financial freedom by supporting public blockchains.

The government's recommendations back the adoption of diverse digital assets in America while supporting a CBDC. One out of five Americans currently invest in digital assets, and the White House policy would favor crypto investors in the long run.