President Joe Biden will sign today an executive order directing government agencies to examine the potential benefits and risks of cryptocurrencies as it seeks to position the U.S. at the forefront of technological crypto innovation, according to a White House fact sheet.
"The United States must maintain technological leadership in this rapidly growing space, supporting innovation while mitigating the risks for consumers, businesses, the broader financial system, and the climate," the document said.
Besides focusing on crypto's impact within the country, the U.S. "must play a leading role in international engagement and global governance of digital assets consistent with democratic values and U.S. global competitiveness," it said.
The whole-government policy maps out six key priorities — consumer and investor protection; financial stability; illicit finance; U.S. leadership in the global financial system and economic competitiveness; financial inclusion; and responsible innovation.
Some parts of the plan are already in action. For example the order includes exploring a U.S. central bank digital currency, a project the Federal Reserve has already started with the release of a discussion paper in January. And in November, the President's Working Group on Financial Markets, along with the FDIC and the Office of the Comptroller of the Currency, issued a report asking Congress to enact legislation regarding stablecoins.
Congress will also play a role. "The administration will continue work across agencies and with Congress to establish policies that guard against risks and guide responsible innovation, with our allies and partners to develop aligned international capabilities that respond to national security risks, and with the private sector to study and support technological advances in digital assets."
The news gives cryptocurrencies some vigor, driving bitcoin (BTC-USD) back up over $40K, recently trading up 8.8% at ~$42.3K; ether (ETH-USD) rises 6.8% to $2.76K, XRP (XRP-USD) rises 4.0%, Terra (LUNA-USD) +22%, cardano (ADA-USD) +5.4%.
Most crypto-related stocks are climbing in premarket trading: Coinbase Global (NASDAQ:COIN) stock +6.9%, Bakkt (NYSE:BKKT) +7.5%, Riot Blockchain (NASDAQ:RIOT) +8.5%, MicroStrategy (NASDAQ:MSTR) +8.2%, Marathon Digital (NASDAQ:MARA) +9.7%, CleanSpark (NASDAQ:CLSK) +7.5%, Hut 8 Mining (NASDAQ:HUT) +9.3%, HIVE Blockchain (NASDAQ:HIVE) +6.4%.
Earlier, Cryptos soar after accidental release of coming executive order
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