New Development In U.S. National Cryptocurrency Policy May Have Wide-Ranging Impact

On March 9, President Biden signed a first-of-a-kind  Executive Order (and accompanying  Fact Sheet) that immediately impacted cryptocurrency markets and gave American businesses and investors an indication of impending regulatory changes. The Order seeks to develop American monetary policy to address cryptocurrency's recent but material impact on the world economy.

Cryptocurrency has been steadily growing in the United States, and 16% of Americans have invested in, traded, or used cryptocurrency.¹ But digital currency isn't just growing in the United States with “[o]ver 100 countries” exploring the use of cryptocurrency as their sovereign currency² and El Salvador officially adopting Bitcoin as a legal tender.³ Because of these developments, the Biden Administration believes there is an opportunity to reinforce American leadership in the global financial system, but only by enacting new policy priorities.