President Biden Issues Executive Order on Crypto

The executive order focuses on protecting investors, consumers, and businesses when it comes to the crypto ecosystem and calls for the creation of the necessary regulatory frameworks around digital assets that would give guidance and protection for investors within the U.S. while also mitigating risk.

“While many activities involving digital assets are within the scope of existing domestic laws and regulations, an area where the United States has been a global leader, growing development and adoption of digital assets and related innovations, as well as inconsistent controls to defend against certain key risks, necessitate an evolution and alignment of the United States Government approach to digital assets,” President Biden writes in the executive order.

In addition to addressing the need for a regulatory framework, the executive order also calls for research into creating a U.S. central bank digital currency (CBDC) that could address more affordable cross-border money transfers and help bring the underbanked into the U.S. financial system. All related government agencies that have any purview over crypto have 180 days to research and create an analysis on the impact of digital assets on the financial system and the crypto industry as a whole, as well as the impacts of the creation of a CBDC would have.

″[It’s] unequivocally bullish for the crypto ecosystem over all timeframes,” said Travis Kling, CEO at Ikigai Asset Management. “It’s easy to lose sight of how much ground this ecosystem has covered in the last two years in terms of legitimacy and stance from the U.S. government, but this E.O. makes it clear the U.S. government is not banning crypto; it is embracing it.”

The executive order also calls for an analysis of the energy use that crypto requires and the climate impacts that blockchain has.

Bitcoin was up 8% on the news of the executive order, with other cryptocurrencies trading higher as well. For investors looking to invest in the possibilities within the crypto economy and the innovators within the space, Invesco provides two different funds.

The Invesco Alerian Galaxy Crypto Economy ETF (SATO) invests across the crypto industry in a variety of crypto-related categories and across all market caps within developed and emerging markets. By investing across a range of crypto assets, investors can capture potential within the space while mitigating the risk compared to a singular spot exposure.

For investors looking for an opportunity to gain exposure to crypto’s growth, the Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC) offers investment in blockchain innovation, making it all possible. The fund is based on the Alerian Galaxy Global Blockchain Equity, Trusts, and ETPs Index.

Neither fund invests directly in cryptocurrencies or crypto assets, and they do not invest in initial coin offerings or futures contracts on any cryptocurrencies. SATO and BLKC both carry an expense ratio of 0.60%.

For more news, information, and strategy, visit the Crypto Channel.