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President Biden Issues Executive Order on Cryptocurrencies, Taking Steps Toward Regulation

Entrepreneurs and investors in cryptocurrencies and other digital assets may finally receive guidance and clarity from the federal government.

On March 9, 2022 President Joe Biden issued the “Executive Order on Ensuring Responsible Development of Digital Assets” (the Executive Order), in which he called for a broad review of digital assets, including cryptocurrencies, citing the $3 trillion digital asset market cap as of November 2021 and a survey suggesting that upwards of 16 percent of American adults have invested in, traded, or used cryptocurrencies.

Crypto and blockchain industry participants should be sure to communicate with counsel frequently, as developments and updates may very well be coming piecemeal, and will almost certainly have significant effects on existing industry practice.

The Executive Order sets forth six main objectives:

  1. Consumer and investor protection;

  2. Financial stability;

  3. Mitigation of illicit finance and national security risks;

  4. U.S. leadership in the global financial system and economic competitiveness;

  5. Financial inclusion; and

  6. Responsible innovation.

The Executive Order also calls for continued research into a U.S. Central Bank Digital Currency.

The Executive Order represents the first whole-of-government approach to the benefits and risks of digital assets on the whole. Further, it serves as official recognition of the growing impact of digital assets and the federal government’s intent to regulate digital assets on the whole and cryptocurrencies specifically.

While the Executive Order does not have any direct, immediate implication, the looming arbiter of federal investigations, regulation, and oversight will likely have ripple effects throughout the crypto universe. Hopefully, the Executive Order signals the federal government’s desire to create a consistent, organized, and thoughtful approach to digital assets, which would be welcomed by the industry on the whole. 

© 2023 Dinsmore & Shohl LLP. All rights reserved.National Law Review, Volume XII, Number 80
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About this Author

David A. Lopez-Kurtz Finance Attorney Dinsmore Cincinnati
Associate

David focuses his practice on corporate and securities matters with an emphasis on private and public securities transactions, compliance, and disclosure obligations. He also represents both large and small companies on all aspects of business formation, fundraising, commercial contracts, mergers and acquisitions, and regulatory compliance.

He represents clients in the digital currency and blockchain ecosystem, working as outside general counsel and drawing on the firm’s national platform and comprehensive range of capabilities as he advises on...

513-977-8328
Vincent Mora Attorney Corporate Law Dinsmore Shohl Columbus
Associate

Vincent focuses his practice on corporate law, including mergers and acquisitions, private equity transactions, and general corporate matters. He has worked with a wide range of clients, from start-ups and non-profit organizations to established private equity funds. He also focuses his practice on the representation of institutional investors in alternative investments. In this space, Vincent has represented institutional limited partners in their investments in different strategies including venture capital, buyout, and real estate.

Prior to...

614-227-4239
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