President Biden’s Executive Crypto Order Will Destroy the US Industry, Ex-Treasury Official Says

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For those that haven’t heard the news, American president Joe Biden was in the news for something else than bashing on Russia in the past week. President Biden signed an executive crypto order last week, allowing the Federal Reserve to explore the possibilities of its own digital currency.

According to the Treasury Secretary Janet Yellen, such a currency will promote a fairer and more efficient financial system while preventing unlawful finance. Of course, crypto enthusiasts were not happy with the move, hoping that the country will finally take a positive stance on Bitcoin.

Examining the Risk and Benefits of Crypto

The massive popularity of cryptocurrencies in the USA is seen by Biden’s administration as an opportunity to see what benefits digital currencies can bring. By digital currencies, we mean one issued by the treasury. Bitcoin is still off limits, and the executive order may bury it. Under the Biden-signed executive order, federal agencies should examine the impact of a government-owned digital currency.

And, while the president’s administration presents it as a positive thing, an ex-Treasury official says it’s an ‘unfortunate thing’. Gregory Zerzan expressed his disappointment with the executive crypto order saying that it’s not a pathway to innovation at all. He even added that it could be dangerous to the already fragile industry.

In a time where cryptocurrencies are poised for a boom and other countries are moving toward legalization, the USA is going the other way. In a TV show appearance, Zerzan said that the government approach is wrong. The executive order essentially allowed every government agency from the EPA to the Department of Justice to explore the possibilities of a digital currency when it could just adopt crypto.

Even worse, it calls crypto a serious risk to everything from climate change to human rights, which couldn’t be farther from the truth.

The EU Is Taking Another Approach

While crypto regulation is still slow around the world, the European Union recently shifted its stance a bit. On Monday, the EU rejected a proposed rule that would ban Bitcoin, which is surely a step in the right direction. It essentially means that the EU isn’t giving up on cryptocurrencies like the USA.

Of course, it’s not outright crypto legalization, but it’s a much better approach than the US executive crypto order. The rejection comes at a time when major cities in Europe such as Lugano have opened the doors for cryptocurrencies. It’s how cryptocurrencies should be treated.

There’s always a chance for the order not to pass by Congress. It could reject the suggestions coming out of that order. Crypto prices have not been great these weeks due to the Russia-Ukraine war, but according to Zerzan, the promise is yet to be realized. If we drown it in a sea of red tape, it could never reach its potential.

Zerzan said that Americans should watch the crypto space and hope that the government doesn’t overregulate it. The sky is the ceiling for cryptocurrencies, and these kinds of executive orders restrain them from truly blossoming. Let’s hope that the Congress fails to react to the order which might spell doom for Bitcoin in the USA.

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Author: Harper James