US Executive order on Cryptocurrency
On 9th March 2022, U.S. President Joe Biden signed an executive order on cryptocurrency.
About the executive order
The executive order called on U.S. federal agencies to examine the risks and benefits of cryptocurrencies. The order also mentioned the need for a unified approach to regulation and oversight of digital assets.
The measures announced in the executive order focused on six key areas:
- Consumer protection
- Financial stability
- Illicit activity
- S. competitiveness
- Financial inclusion
- Responsible innovation.
Protection of consumers
The executive order laid great emphasis on protecting the consumers in the wake of numerous crypto scams, cyber-attacks, etc. Gullible investors are being exploited by crypto scammers. Thus, there is a need to ensure adequate oversight against any systemic financial risks posed by digital assets.
Effectively tackling illicit activities in the crypto space is another key focus area in the executive order. President Joe Biden called for coordinated action from federal agencies in preventing illicit financial activities and national security risks posed by cryptocurrencies. President also urged collaborations at the international level to curb illicit activities in the crypto space.
The executive order also has mention of negative impacts of cryptocurrency on the environment. Huge energy is required to mine cryptocurrencies and this will increase usage of fossil fuels, thus contributing to climate change. Also, a huge amount of e-waste will be generated in the process of crypto mining and usage. Thus, any innovation must consider these impacts.
Category: Science & Technology Current Affairs
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