President Joe Biden signed an executive order on related to cryptocurrencies in March 2022.
This is a significant step for the US as this marks the first solid step made by the white house to contend with digital currency. There was high anticipation of the executive order causing uncertainty in the crypto world. It is due to the regulatory issues raised around cryptocurrencies. The executive order dictates what the government agencies, inclusive of the treasury department, need to work on in a unified approach to advance policies and regulations on cryptocurrencies. Crypto Lists explored further this historic moment in the crypto world.
What the executive order on cryptocurrency contains
The primary reason for the executive order is to evaluate the risks and advantages of cryptocurrencies. The order calls on the countries’ agencies to ensure the cryptocurrency laws go hand in hand with the US allies. The Financial Stability Oversight Council is also be directed by the order to inquire into any illegitimate financial concerns.
The measures outlined on the executive order address the following areas:
+Consumer and investor protection
+U.S.A competitiveness on a global stage
The protection of consumers and investors is an essential element in the executive order. It seeks to address the ever-increasing number of crypto scams in the market. In addition, due to the increased popularity of cryptocurrency, it has been a target for cyberattacks on exchanges and platform users.
Included in the executive order, President Biden also mentions concerns over the energy costs that cryptocurrencies generate. He calls out agencies to provide innovative ideas in reducing the negative impact on the climate.
Moreover, the order lays out a new urgency on the possibility of a new government-issued central bank digital currency. It is essential, especially with China leading on towards the Central Bank Digital Currencies (CBDCs). The crypto market recovered well after the news
The dynamics of the executive order on the Russian’s Invasion in Ukraine
The president’s new order has come into view as cryptocurrency is viewed as a vital element of Russia’s war against Ukraine. Ukraine has suffered immensely following the conflict. The war has deemed the Ukraine country significant costs with no solution in sight. The rising costs have pushed people all over the world to support Ukraine’s defence through the cryptocurrency world. Recently, the Ukrainian government had tweeted a requirement for crypto donations. Within no time, an amount of more than $50 million worth of cryptocurrency streamed in. The Ukrainian government also announced their plan to mint NFTs meant to fund the military for defence purposes.
The plans to mint NFTs by the Ukrainian government to finance the military have been underway. Ukraine’s vice-Prime Minister and minister of digital transformation tweeted plans to support the country’s armed forces with the use of NFTs. An NFT of Ukraine’s flag pulled in more than $6.7 million to help Ukrainians in need following the Russian attack. The NFT was created by the UkraineDAO, which is funded by a member of the feminist punk band pussy riot.
The coin, however, has sparked emerging concerns in how Russia plans to use crypto as a way to deviate from sanctions. This has brought forth a situation by which crypto scammers are using Russia’s invasion of Ukraine to steal money from those seeking aid services. This state of affairs has led to the rise of more volatility in the cryptocurrency market. The experts forecast more up and down surges will continue. Since crypto has a wider adoption with its latest orientation to the stock market, it makes it more linked to the international conflict. Bitcoin is levitating around $40000 after falling under $35000 immediately following the attack. Ethereum is currently back below $3000. The experts, however, caution not to make financial decisions based on the panic surrounding the news.
The United States treasury department advised cryptocurrency companies to keep a lookout on their cyber security amidst rising concerns that Russia could set in motion a cyber attack to strike back against US sanctions. Bitcoin is the hugest cryptocurrency by market cap and a leading indicator of the crypto market. Coins like Ethereum are inclined to follow bitcoin’s trend. Since bitcoin set a new all-time high, it’s a normal trend as the cryptocurrency is well known for its volatility. As cryptocurrency is still in the new market, investors are advised by experts to not make any investment changes based on the ongoing fluctuations.
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