Microfocus
  • Home
  • Business Economics
  • Business Education‎
  • Business Ideas
  • Business Law‎
  • Business Ownership‎
  • Business News
Select Page

President Biden’s executive order on crypto

Mar 16, 2022

President Biden's executive order on crypto



President Biden released his long-awaited executive order (EO) on cryptocurrency on March 9. The crypto community reacted with relief. The price of Bitcoin went up 8.4% that day and crypto leaders from Ripple CEO Brad Garlinghouse to Coinbase’s policy chief Faryar Shirzad publicly praised the order. Biden’s order certainly could have been worse. But it may not be the panacea the community thinks it is, either.

Let’s start with the good news.

There’s a lot in this executive order to either like or at least not mind. It states a clear desire to protect consumers and investors. Any mainstream crypto supporter wants consumer protection too. No legitimate crypto business wants to see people scammed by fraudulent ICOs or anything else.  

Related Posts:

  • Why Privacy-Oriented Alternatives To Bitcoin Are Really Shooting Up Today - Bitcoin - United States Dollar ($BTC)

The order also seeks to “mitigate the illicit finance and national security risks posed by the illicit use of digital assets.” This makes a lot of sense. There are threats to national security by the multiple illicit items that can be untraceable when purchased on browsers like Tor. Any bad actor currently watching the situation in Russia has to be thinking: “We should move as much of our economy as possible into crypto to evade the sanctions that are killing the Russian economy.” Putin’s lack of foresight on this issue created a cautionary tale for other bad actors, and a clear need for this provision in the EO. 

Another provision aims to “promote U.S. leadership in technology and economic competitiveness to reinforce U.S. leadership in the global financial system.” This section directs the Department of Commerce to start prioritizing/creating crypto-related jobs in the U.S. That’s very good, and if there is a Biden cabinet member who can succeed with this, it’s Commerce Secretary Gina Raimondo.

There’s a tremendous opportunity for the nation to capture the bulk of crypto-related jobs and provide a significant boost to the economy. But it will only happen if the regulations are not overly restrictive, if there is a set of clear and fair rules, and if the government actually, proactively, uses its assets and resources to lure crypto businesses here. Our government does not have a great track record of doing this. 

Finally, on the plus side, the EO seeks to “promote equitable access to safe and affordable financial services.” We don’t know anyone in the crypto world who thinks that the U.S. financial system is currently accessible, affordable, or fair. The very existence of crypto is a rejection of the status quo. Underrepresented groups and the underbanked already utilize crypto to a higher degree than the fully banked, so whatever the crypto community can do to expand access and equity makes sense.

However, most of these are just vague goals with few resources or specific policy ideas dedicated to any of them. The rest of the EO is worrisome. Most concerning is the clear continuation of authority by the federal government: the Department of the Treasury, Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), the FDIC, and others, to regulate crypto however they see fit. 

To be clear, this authority existed before the order was issued, but by reinforcing it so strongly in the first two provisions of the EO, the administration is making it abundantly clear that regulations the industry may not like are still likely coming. 

Before the EO, the federal government didn’t have a completely clear way to regulate the asset class. For example, the SEC classifies it as a security. The CFTC classifies Bitcoin (BTCUSD) specifically, as a commodity while the Treasury calls it a currency.

Yet the government can decide how it should be taxed and whether margin borrowing is allowed. What reserve requirements should exist for stablecoins. What types of disclosures are necessary. Whether there should be a federal license required for exchanges. And so many more. Everything the crypto community fears is still very much on the table. 

So the key problem remains. Any anti-crypto regulator, like SEC Chair Gary Gensler, still has all the power they need to crack down on the industry in any way they want. Yes, Congress may have to approve some of these measures, and killing things in Congress these days isn’t particularly difficult. But the Treasury Department still has broad executive authority that should not be underestimated.

The next steps for the sector are clear: Get your political act together. The greatest risk facing cryptocurrency is not technology or the banking system. It’s regulation. And while there are a lot of people in this country who care about crypto, and while the industry itself has lots of money that it could spend on elections and candidates, there have been few successful efforts—if any—to organize politically. 

It’s not as hard as they think. Every policy output is the result of political input. Every elected official looks at every issue solely in the context of their next election. If they think you can either help them win reelection, or if they think that defying you could cause them to lose the next election, they’ll do what you want. If they don’t think you can impact the next primary, you don’t matter. 

Right now, no one thinks the crypto community can have any impact on any election. Until the community invests real time and resources into politics, no one will fear crypto. And as a result, the Treasury and all of the other relevant agencies will feel free to do whatever they want. The executive order reaffirmed that with one simple sentence: “The Order also encourages regulators to ensure sufficient oversight and safeguard against any systemic financial risk posed by digital assets.” In other words, they can pursue any regulation, any crackdown, any restriction that pops into their minds. Still. That’s a major problem.

Could the executive order have been worse? Sure. It could have laid out clear regulations that restrict the sector in multiple ways. It didn’t do that. But has anything really changed? No. The risks are the same. The opportunities are the same. 

In other words, this executive order is not nearly as helpful as the community seems to think. There’s still a lot of work and risk ahead. No one should be exhaling sighs of relief just yet. 


Bradley Tusk is a venture capitalist, writer, philanthropist, and political strategist.

Bob Greenlee is the COO of Tusk Holdings.





Source link

Recent Posts

  • SAP and Cloudflare under fire for Russia presence
  • Securing the UK public sector in the era of hybrid working
  • Data theft group might be ‘frustrated’ white hat hackers
  • Microsoft reveals Power Platform low code upgrades
  • Fears over tight supply keep crude oil futures elevated

Categories

  • Business
  • Business Economics
  • Business Education‎
  • Business Ideas
  • Business Law‎
  • Business News
  • Business Ownership‎
  • General
  • health
  • Medical
  • Real estate

Trails Js

Management Certificate Online Washington Tech

Partner Links

Intellifluence Trusted Blogger

BL

linkspanel

textlinks

Visit Now

pearson education

Archives

  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
May 2022
M T W T F S S
 1
2345678
9101112131415
16171819202122
23242526272829
3031  
« Apr    
  • Advertise Here
  • Contact Us
  • Privacy Policy
  • Sitemap
  • Home

Tags

Amazon Business Login Atos Best Business Schools Business Business Bank Account Business Card Maker Business Cards Near Me Business Card Template Business Casual Attire Business Casual Shoes Business Casual Woman Business Plan Examples Ca Business Search Centre Chase Business Credit Cards Chase Business Customer Service Chase Business Login Chase Business Phone Number Cheap Business Cards Citizens Business Bank COVID19 Cox Business Login Digital Business Card Free Business Cards Google Business Login information Innovation Lands End Business Massage Parlor Business Near Me Michigan Business Entity Search Mind Your Business Ohio Business Search Research Risky Business Costume Small Business Loan Small Business Saturday 2021 Starting A Business Texas Business Entity Search Triumph Business Capital Vending Machine Business Verizon Business Customer Service Vonage Business Login Wells Fargo Business Account Yahoo Small Business Yahoo Small Business Login
  • Facebook
  • Twitter
  • Instagram
  • RSS
microfocus-x-ray.com 2020