If there were ever any fears of a widespread international or United States-led crackdown on Bitcoin, those appear to be gone and the United States appears to have indicated its intent to be an international leader in the area.
While the EO suggests the government is now also considering the technology’s potentially positive impact, it still explicitly cites consumer protection and illicit finance as top priorities.
Department of the Treasury on March 1, 2022, that indicated one of the most significant illicit finance threats to the United States is the “increased digitization” of payments and financial services.
In addition, we are three months removed from the February 17, 2022, appointment of Eun Young Choi as the first director of the recently formed National Cryptocurrency Enforcement Team to serve as a cryptocurrency-specific enforcement team charged with investigating and prosecuting complex cases involving the criminal misuse of cryptocurrency.
While most agencies were given a lengthy time frame , the practical reality is that each agency has a unique purpose and directive that may not always be symbiotic with those of other agencies.
As to the latter, the omission is interesting given the increasing amount of capital moving toward the DeFi market, and the uncertainty as to regulatory guidance and enforcement in the developing market sector within the intersection of blockchain technologies, digital assets and financial services.
This emphasis is particularly interesting, as it comes on the heels of a recent law that appears designed to curb the number of U.S.
More specifically, on November 15, 2021, President Biden signed the Infrastructure Investment and Jobs Act.
Failure to do so could result in possible felony charges, up to five years imprisonment and no financial ceiling on penalties.
For businesses looking to accept cryptocurrency, these new requirements impose technological, logistical and legal burdens that may be too costly or too risky to be cost-effective.
Instead, the EO’s discussion on the future of payments and money seems to focus more on the potential issuance of a central bank digital currency that would be backed by the Federal Reserve.
While large questions continue to loom, it is worth noting that adoption of a CBDC by the United States could fundamentally alter the role of both central and commercial banking.
Instead, the EO opens the door for a constructive approach to thoughtful discourse and regulations by calling for a researched, calculated and coordinated effort to address the nuances of a rapidly growing industry.
For example, the DOJ recently provided express notice that its approach to cryptocurrency crime is evolving beyond individual bad actors and will include corporate compliance with the Bank Secrecy Act and Anti-Money Laundering Act.