President Joe Biden has recently issued an executive order addressing the peculiar case of cryptocurrencies. Marc Powers, professor of blockchain legislature at the Florida International University, recently talked in detail about the impact of the EO on the global cryptocurrency expression and adoption. Powers first exclaimed that the EO was unexpected and carried a mild shock factor with its arrival.
The EO decrees the government agencies, departments, and cabinet members to study in detail the disadvantages and limitations of the digital asset economy. He also claimed that the move was to undermine the legislative influences of former VP Al Gore. Al Gore is an antiquated figure in US politics that rose to prominence in the 90s under the Clinton administration. Al Gore is primarily associated with nationwide internet adoption and promotion.
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According to the astute observation of Professor Powers, President Biden’s EO has imposed strict deadlines and performance expectations for the designated government agencies. Powers claim that by the decree of the EO, every single department is required to submit regular reports under a limited amount of time which leaves little room for lack of transparency and ensures stringent coordination between the nominated state agencies.
He noted that Treasure Secretary, Attorney General, Commerce Secretary, National Intelligence Director, Secretary of State, Homeland security Secretary, Office of Management, and Budget Director are all required to carry out the instructions of EO in 180 days. The subject matter of the report concerns the future of the monetary systems, the adoption of cryptocurrencies, blockchain innovations, and their impact on the various outlets of the American economy.
Professor Marc Powers Claims that CBDCs Around the World will Threaten the Centralized Nature of the US Dollar
As per Professor Powers, the ongoing popularity of CBDCs around the world can threaten the centralized position of the USD in the international trade markets. He also commented that President Biden endorsed the effort of the Federal Reserve under Powell’s reign to conduct research for a USD CBDC. Former SEC commissioner Troy Paredes said at Inveniam Conference last year that the EO also seeks to look at the merits of digital currencies.
Financial regulators like SEC, CFTC, Federal Reserve, Comptroller of Currency, FDIC, and others are directed to work on a regulatory framework to access the market risks for cryptocurrency traders. On the other hand, the Financial Stability Council, which is comprised of CFPB, CFTC, Federal Banking regulators, and SEC members, are also instructed to submit a report within 210 days on financial stability and the lack of regulatory framework for the cryptocurrency sector.