Key Elements of the Executive Order
The executive order aims to evaluate the risks and benefits of cryptocurrencies. It instructs federal agencies to ensure cryptocurrency laws align with those of the US’s international allies and directs the Financial Stability Oversight Council to investigate potential financial risks. The measures in the order focus on several key areas:
- Consumer and investor protection
- Financiële stabiliteit
- Illicit activity prevention
- US competitiveness on the global stage
- financiële inclusie
- Verantwoorde innovatie
The order emphasizes protecting consumers and investors from scams and cyberattacks, which have surged with the growing popularity of cryptocurrencies. Additionally, it highlights the need to address the environmental impact of crypto mining and calls for innovative solutions to reduce its carbon footprint.
Focus on Central Bank Digital Currency (CBDC)
The executive order also prioritizes exploring the development of a government-issued Central Bank Digital Currency (CBDC), particularly as China advances its own CBDC. This move underscores the US’s efforts to maintain competitiveness in the global financial system.
Impact of the Russia-Ukraine Conflict on Crypto
The timing of the executive order coincides with heightened global attention on cryptocurrencies due to the Russia-Ukraine conflict. Ukraine has received over $50 million in cryptocurrency donations to support its defense efforts. These funds have been used for non-lethal supplies such as bulletproof vests, food, and fuel. Notably, Ukraine has also explored using NFTs to fund its military, raising $6.7 million through an NFT of the Ukrainian flag created by UkraineDAO.
However, concerns have arisen about Russia potentially using cryptocurrencies to bypass sanctions. This has led to increased scrutiny of the crypto market and heightened volatility, with Bitcoin fluctuating between $35,000 and $40,000 and Ethereum trading below $3,000.
Zorgen over cyberbeveiliging
The US Treasury Department has advised cryptocurrency companies to strengthen their cybersecurity measures in light of fears that Russia may launch cyberattacks in retaliation against sanctions. Experts caution investors against making rash financial decisions based on market fluctuations or news panic.
