Biden Signs Order to Promote “Responsible Innovation” for Cryptocurrencies

Biden Signs Order to Promote “Responsible Innovation” for Cryptocurrencies

the US president, Joe Bidensigned an executive order Wednesday morning asking federal officials and financial agencies to create a map and concrete plan for the regulation of cryptocurrenciesin addition to identifying the risks and opportunities presented by this innovation.

The information was disclosed by SEC chairman Gary Gensler on his personal Twitter account. According to him, the idea of ​​the proposal is, as always, to protect investors from illegal activities and also to maintain financial stability and security.

“Today, the President of the United States signed an Executive Order on cryptocurrencies. I am excited to continue working with colleagues in various government areas to achieve important public goals: protecting investors and consumers, suppressing illegal activity and helping ensure financial stability.”

responsible innovation

This is the first time the government has attempted to create some form of unified strategy and movement among federal agencies to respond to the growing cryptocurrency market. However, the warrant is just a requirement for entities to start studying what to do, so it doesn’t provide any regulatory guidance.

Many in the industry have long called for clear and straightforward industry regulatory guidance so that brokers and companies can trade without worrying about being sanctioned by the SEC for not knowing exactly what is and isn’t allowed.

It is precisely this framework that the board intends to build with the implementing decree.

“We hope that in the future this executive order will lead to a regulatory state in which there are bodies with greater clarity about how the current regulatory framework can and should be used in the blockchain industry and to identify any flaws,” said Denelle Dixon, CEO and Director Stellar Development Foundation Executive.

The implementing decree also mentions six areas of focus for this period of responsible development:

  • Protect consumers and businesses;
  • Protect financial stability;
  • Limit risks;
  • US leadership in the global financial system and its competitiveness;
  • financial inclusion;
  • Responsible innovation.

This sheds some light on what the government’s goal is to promote responsible innovation: to maintain the traditional financial system, especially the US and the dollar.

There is a division between those who defend and those who oppose any kind of regulation in this sector, as the crypto market was born to move away from the traditional system and even replace it.

Source: Live Coins