Bitcoin: Biden signs landmark executive order to ‘develop and use’ cryptocurrencies

‘We must support technological advances that promote responsible development and use of digital assets,’ the order states

US President Joe Biden on 4 February, 2022 in Upper Marlboro, Maryland (Getty Images)

US President Joe Biden has issued an executive order to ensure “responsible development” of cryptocurrencies like bitcoin, marking the first time the world’s largest economy has made a move to regulate cryptocurrency.

The order acknowledges the popularity of cryptocurrencies – the overall crypto market is currently worth more than $1.8 trillion – as well as their potential to disrupt the traditional financial system.

The crypto industry has called for regulation to protect both consumers and businesses, though it was feared that strict rules could stifle innovation in the space.

The executive order, published to the White House’s website on Wednesday, specifically states that innovation should be encouraged and supported by lawmakers.

“We must support technological advances that promote responsible development and use of digital assets,” the order states.

“The technological architecture of different digital assets has substantial implications for privacy, national security, the operational security and resilience of financial systems, climate change, the ability to exercise human rights, and other national goals.

“The United States has an interest in ensuring that digital asset technologies and the digital payments ecosystem are developed, designed, and implemented in a responsible manner that includes privacy and security in their architecture.”