Wednesday’s announcement was hailed as “very encouraging,” “long overdue,” and an “acknowledgment that bitcoin is here to stay,” according to analysts.
According to a White House fact sheet, President Joe Biden officially authorized federal agencies to establish a strategy for policies and regulations on digital assets like crypto with the signing of a new executive order on cryptocurrencies.
“In the long run, this is really great for the crypto market and is absolutely necessary to allow it to expand, mature, and be more accessible to institutional investors,” says Tal Elyashiv, founder of SPiCE VC, a blockchain and tokenization venture capital firm.
The order, according to experts, will pave the way for the regulatory clarity required for widespread institutional adoption of Bitcoin and other digital assets. Long-term investors will benefit from more stability in the typically volatile crypto sector.
Biden’s order also directs US agencies to ensure that the country’s cryptocurrency regulations are consistent with those of US allies, and the Financial Stability Oversight Council to look into any suspicious financial activity.
Furthermore, the decree gives the possibility of a new government-issued central bank digital currency a fresh sense of urgency.
Six crypto professionals were asked what they thought of Biden’s executive order and what investors should think about it. Here’s what they had to say:
Experts React to Biden’s Executive Order on Crypto‘A Step in the Right Direction
It’s a step in the right direction that the White House is assessing digital assets from the perspective of innovation and competitiveness. Data shows working and middle-class Americans that have been locked out of the traditional financial system are leading mainstream adoption of blockchain and cryptocurrency.
So we need this government strategy to prioritize greater federal investments in skills training and access to capital to ensure new female investors, Black and Latino entrepreneurs, startup founders, and small businesses in urban and rural communities are empowered to lead and thrive.”
Biden’s executive order serves as a timely reminder that policymakers in the United States are paying careful attention to cryptocurrency and how it may affect financial markets in the future. However, it shouldn’t cause crypto investors to modify their long-term investing strategy right away.
According to Elyashiv, the administration’s approach may cause some noise and volatility in the crypto market in the short term. After the White House stated that Biden would sign an executive order on cryptocurrency, bitcoin rose 9% to over $40,000. Ethereum’s value soared almost immediately.
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