White House issues its Executive Order on cryptocurrencies

The White House showed off a new Executive Order on Wednesday. The order lays out a broad strategy for how the government plans to balance consumer protection while ensuring that the United States continues to be a space for innovation in the sector.

The order's language seems to indicate that the Biden White House is not interested in sweeping near-term reforms and is instead focused on ensuring that agencies are on the same page in researching and observing the national security implications.

The rise in digital assets creates an opportunity to reinforce American leadership in the global financial system and at the technological frontier, but also has substantial implications for consumer protection, financial stability, national security, and climate risk.

The seven major goals of the executive order are laid out in the press release.

• Protect U.S. Consumers, Investors, and Businesses
• Protect U.S. and Global Financial Stability and Mitigate Systemic Risk
• Mitigate the Illicit Finance and National Security Risks Posed by the Illicit Use of Digital Assets
• Promote U.S. Leadership in Technology and Economic Competitiveness to Reinforce U.S. Leadership in the Global Financial System
• Promote Equitable Access to Safe and Affordable Financial Services
• Support Technological Advances and Ensure Responsible Development and Use of Digital Assets
• Explore a U.S. Central Bank Digital Currency (CBDC)

Lawmakers like Elizabeth Warren, who have been critical of the space, may be less satisfied. In recent months, Warren has criticized the industry, drawing particular attention to the environmental impacts or cryptocurrencies and the investor risks associated with the lack of regulation of so-called stablecoin issuers.

The White House's communications regarding the EO seem to avoid mentioning any particular coins or projects, with the exception of mentioning the price volatility of Bitcoin. There wasn't any mention of DeFi or NFTs.

One senior official on a background press call downplayed the possibility that wealthy Russians would use cryptocurrencies to evade sanctions, despite the concern among some in the industry.

A major focus of the order is formally directing several government agencies to begin researching the development of a U.S. Central Bank Digital Currency.

The White House says that President Biden will sign the Executive Order today.