More Investors Buy Bitcoin as Bitcoin Price Surges as Biden Signs Executive Order on Cryptocurrencies

President Biden’s executive order to explore digital currencies boosted Bitcoin’s price, which the sector welcomed as more investors moved to buy Bitcoin despite critics condemning the order as a delay in required regulation.

The order, named “Ensuring Responsible Development of Digital Assets,” instructed federal departments to create digital currency reports and examine additional rules. It underlined the dangers that cryptocurrencies bring to the economy, national security, the environment, and their potential benefits.

The executive order mandates that US government agencies must analyze the benefits and risks of creating a central bank digital currency and other cryptocurrency-related concerns. The presidential order has the potential to broaden the use of virtual currencies in the financial system of the United States and increase the number of investors who buy Bitcoin.

The Treasury Department, the Commerce Department, and other important departments will be required by Biden’s directive to submit reports on “the future of money” and how cryptocurrencies will play.

The executive order, aimed at addressing the lack of a framework for developing cryptocurrencies in the United States, has received widespread support from the industry and its investors. Critics have said that a lack of regulatory certainty might hold the United States back in the crypto space, allowing the rest of the world to catch up. The lack of regulatory clarity in the crypto industry has also been noted as an impediment to increased institutional adoption.

The executive order will not affect the way the United States views cryptocurrency shortly, nor will it affect investors’ decision to buy Bitcoin, but it will begin developing laws for digital currencies. Biden has directed federal agencies to investigate many of the issues that crypto has caused as it has grown in popularity, such as its role in money laundering and terrorist groups. Despite the government’s plans to investigate some of crypto’s most contentious issues — and the numerous unanswered uncertainties about crypto’s future in the United States — the White House recognizes bitcoin and other cryptocurrencies as cause for celebration among crypto enthusiasts.

The directive also calls for safeguards for American consumers, investors, businesses, the US and global financial systems, and systemic risk mitigation. It also instructs the US government to consider “the technological infrastructure and capacity requirements for a future” central bank-issued digital currency.

More Investors Buy Bitcoin As Bitcoin Price Rises

There was a surge in Bitcoin price following the signing of the executive order. Bitcoin investors welcomed the news, and several decided to buy Bitcoin. Despite critics voicing their concerns, this has not deterred investors, and the Bitcoin price is expected to continue experiencing a surge. However, it remains to be seen if this price increase will eventually correct itself in the long run. 

Biden has also directed the federal government to investigate the potential impact of cryptocurrency-which requires a tremendous amount of energy to generate on the environment. With the order signed, The Financial Stability Oversight Council, a government body that studies the US financial system, will assess cryptocurrency’s threat to the economy as a whole. Meanwhile, the attorney general, the Treasury Secretary, and the Department of Homeland Security will develop a national strategy to tackle cryptocurrency-related crimes.

The White House, on the other hand, appears to believe that cryptography can be beneficial. The Commerce Department will look at how cryptocurrencies can help the United States compete in the global economy. The decree also instructs the government to foster technological advancements that will help to stimulate the use of crypto and digital assets while maintaining privacy and security. Biden even urged the government to continue looking into a proposal to develop its own digital money. This fledgling but controversial idea calls for a central bank, such as the Federal Reserve, to create a digital currency pegged to the US dollar, dubbed the “digital dollar” by some.

While a digital dollar would not be as volatile as bitcoin, its mechanics would be similar, and people who buy Bitcoin can consider it an alternative as a government-backed digital coin, like crypto, would almost certainly use a ledger and digital wallets. Industry experts widely regard the executive order as the first step to a complete regulation of cryptocurrencies in the United States.

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