US President Joe Biden has just signed an executive order to evaluate the risks and benefits of cryptocurrency.
According to this decision, the US Department of the Treasury and the Department of Commerce will be responsible for establishing a framework to enhance US competitiveness in cryptocurrency, designing and implementing future cryptocurrency systems. The Federal Reserve is also required to expedite research and the potential release of a digital dollar.
The new decree will help the US government better control digital currency, enhance market transparency; provide benefits, and better protect consumers and businesses; while creating a legal framework to prevent illegal activities such as tax evasion and money laundering.
The US has seized bitcoin worth $3.6 billion - the largest cryptocurrency seizure to date related to the 2016 Bitfinex exchange hack. Despite the risks, about 16% of Americans, or 40 million people, have invested in cryptocurrency.
The decree just signed by the US President is expected to provide clearer legal oversight of the US government's regulation of cryptocurrency. It also reflects the recognition of the increasing importance of cryptocurrencies like Bitcoin and their potential implications for both the global financial system and that of the US.