Biden’s Executive Order Isn’t All Positive For The Crypto Industry — A Look At The Downsides

• Biden’s executive order was greeted with excitement amongst industry experts.
• Congressman Tom Emmer, on the other hand, expresses reservations about the order.
• The absence of the use of decentralization is a cause of worry for the Congressman.

Biden’s long-awaited executive order is finally here and has been largely received positively by crypto enthusiasts. However, Minnesota Congressman Tom Emmer raised some concerns that may have slipped past proponents.

Reading Between The Lines

Biden’s executive order was originally expected to be released last month and has been long-awaited by crypto enthusiasts. The order was designed to give clarity on the position of the United States government on cryptocurrencies and other digital assets.

Biden’s executive order urged various federal agencies to carry out studies on the nascent market, considering the potential benefits and risks to consumers as well as placing urgency on CBDC development. The order made it clear that the US wanted to maintain its competitive edge when it comes to innovation. In an interview with CNBC, Bitwise’s Chief Investment Officer, Matt Hougan, admitted that while there was still more work to be done, the US had “taken the first step to establish a true regulatory regime for crypto.”

However, US congressman Tom Emmer took to Twitter to reveal that though there are positives to be taken from the new order if you “read between the lines,” concerns exist. Tom Emmer noted that in the entire executive order, decentralization was not mentioned. It is quite problematic, seeing as this is one of the core reasons for crypto development.

Tom Emmer noted that the concept of decentralization took away intermediaries and allowed Americans “to decide their futures.” Emmer noted that this omission did not inspire confidence that the government would draw up favorable policies for digital assets that prioritize decentralization. Emmer also expressed similar concerns about CBDCs, stating that a CBDC that did not prioritize issues like privacy would be a “nonstarter.”

“The EO places the ‘highest urgency’ on the agencies to study CBDCs. Any commonsense analysis of a potential U.S. CBDC that is not open, permissionless, and private would illuminate that the very idea is an entire non-starter and a disservice to Americans,” he wrote.

SEC Ignored

Tom Emmer also noted that the SEC was excluded from the executive order. However, this is a development that the congressman appears to be pleased with. Emmer stated that “SEC Chair Gensler has spent the past year intimidating crypto innovators and entrepreneurs with his unproductive regulation by public statement and enforcement action.”

The excitement that greeted the release of the executive order was clearly reflected in the markets. The leak of the details of the order saw many crypto assets surge by an average of 7.5% as Bitcoin surged to more than $42K, a 9.5% increase.

Congressman Tom Emmer wrapped up his review by saying, “it’s critical that we maintain tech and economic leadership on the global stage.” The Minnesota rep revealed that he was committed to working with other legislators to uphold the crypto community in the US.