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Crypto experts hail Biden’s Executive Order on digital assets

The global cryptocurrency space is headed for a firmer regulatory regime following the announcement of a new national digital assets policy, which calls for scrutiny for the risks and benefits of cryptocurrencies.

Signed last Wednesday, U.S. President Biden’s Executive Order mandates the U.S. federal agencies to take a unified approach to regulation and oversight of digital assets, according to a White House factsheet.

In a bid to ensure responsible development of digital assets, the Order outlines a national policy across six key priorities, which include consumer and investor protection, financial stability and illicit finance. Other key areas of focus include the U.S. leadership in the global financial system and economic competitiveness, financial inclusion and responsible innovation.

The Order comes in the wake of a ballooning adoption of cryptocurrency across the globe. By 2021, global crypto ownership stood at an average of 3.9 percent with over 300 million crypto users and over 18,000 businesses that readily accept cryptocurrency globally. On Wednesday, bitcoin prices soared beyond US$42,000, fueled by optimism by the Executive Order

Ola Lind
Ola Lind

Following the much-awaited announcement, industry players have welcomed the executive order terming it as disruptive and progressive.

According to Ola Lind, Serial Entrepreneur and Director of NASDAQ-listed FTFT Capital and cryptocurrency platform FTFTX, Biden’s Executive Order is expected to have a far-reaching influence on the global crypto industry.

“President Biden’s Executive Order has a tremendous influence on the global crypto market, signaling a watershed moment for cryptocurrency, digital assets, and Web 3. It will eliminate to an extent the source of uncertainty for a sector already racked by a slew of regulatory hitches and controversies,” said Ola.

WIth cryptocurrency investors seemingly concurring with the new U.S. digital assets policy, Olay notes that the action by the US government implies that cryptocurrencies have a role to play in the country’s long-term goals and, as such, worldwide.

“This recognition will further accelerate the acceptance and usage of cryptocurrency. The Executive Order is a positive step for the global crypto industry. However, worries continue that not all agencies involved perceive crypto positively, which concerns some crypto enthusiasts, said Ola.

He went on to add, “President Biden’s Order largely directs select authorities to concentrate their efforts on this sector. When these studies are presented and enforced, the industry will adequately establish their genuine impact. For the time being, the Order reflects the Biden administration’s objective of regulating cryptocurrency without impeding innovation and possibly facilitating the United States’ emergence as a more willing market participant in the sector.”

Dr. Neil Pennington

According to Dr. Neil Pennington, PhD, senior advisor, strategy and innovation, Idoneus, consumer and investor protection, financial stability and the U.S. competitiveness on a global stage remain a top priority for the crypto industry. Factors such as illicit activity, financial inclusion and responsible innovation albeit minor are also crucial as far as investor protection is concerned.

“We believe that the major factors driving the U.S. government, indeed governments across the world are focussed on investment risk to their consumers and business and the stability of the financial system. The remaining issues are minor in comparison. The ICO craze of 2017, shined a spotlight on the challenge of how to regulate and ensure investors are protected from malpractice. Since then, and as the utility and market cap of crypto has become increasingly more significant, the impact on financial stability and the role of the U.S. dollar and central bank digital currencies has increased in importance,” said Dr. Neil.

The Executive Order comes against the backdrop of heightened illicit activities and cryptocurrency scams as investors lose millions of dollars through cyberattacks.

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