10 March

“U.S. President Joe Biden signed a first-of-its-kind executive order on cryptocurrencies on Wednesday, directing federal agencies to coordinate their approach to the sector.

The “whole-of-government” effort to regulate the crypto industry focuses on consumer protection, financial stability, illicit uses, leadership in the global financial sector, financial inclusion and responsible innovation, according to a fact sheet accompanying the order.

The executive order directs federal agencies to better communicate their work in the digital asset sector, but it does not lay out specific positions the administration wants agencies to adopt. Similarly, the order did not announce any new regulations for which cryptocurrency companies to abide.

The President has put forward a holistic whole-of-government approach to understanding not only the macroeconomic risks, but also microeconomic, with the risk to each individual, investor and business that engages with these assets.

Digital assets can provide opportunities for American innovation and competitiveness and promote financial inclusion. Innovation is central to America’s story and our economy, generating jobs and opportunities, creating and building new industries, and sustaining our global competitive edge and leadership.

Part of the order directs the U.S. Treasury Department to draft a report on “the future of money and payment systems.”

[The order] recognizes that our assessment of the risks and potential benefits of digital assets must include an understanding of how our financial system does and does not meet the current needs of consumers.

The executive order will also ask agencies to evaluate how the U.S. could issue a central bank digital currency, ‘should issuance be deemed in the national interest.'”

See Also: Full Text of Biden’s Executive Order on Cryptocurrency

The order is largely perceived as a step in the right direction that could offer the industry much-needed regulatory clarity.

Many industry participants hope the executive order will address the current, fragmented regulatory environment in which regulation is often achieved through enforcement actions by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

McCauley called the order a “shot in the arm for crypto” and said that, to strike the balance of “responsible innovation” called for by Biden, ‘the crypto community needs to recognize that – for the benefit of our industry – regulators have a role to play in the crypto ecosystem.’

Today’s executive order makes it clear: This isn’t them-against-us.

Today’s order is the first step in what will likely be an extended process to get the industry the clarity we’ve been seeking. We now have a much better understanding of the government’s intentions and roadmap for digital assets and a commitment to support innovation in this space.”

See Also: Crypto Miners to Benefit From Biden’s Executive Order

Ukraine’s president “shares our vision” that the use of crypto could be an “economic breakthrough,” according to the country’s deputy minister at the Ministry of Digital Transformation.

Bornyakov said that more than $60 million of the $100 million was received in the main fund run by Kuna, the Ukrainian crypto exchange. The rest of the money has been sent to several other smaller funds.

The funds sent to Kuna are reportedly being spent on non-lethal equipment, including fuel, food and bulletproof vests for soldiers.”

See Also: Bored Ape Yacht Club Donates $1 Million in Ethereum to Ukraine

A custodial bank with more than $43 trillion in assets under custody and administration, and just shy of $4 trillion in assets under management, State Street launched a crypto division last year with plans to evolve into a “multi-asset platform” to support cryptocurrency trading and more.

We are building the financial infrastructure needed to support our clients’ allocations to this new asset class.

London-based Copper is a provider of institutional custody offerings across more than 40 exchanges and 450 digital assets.”

See Also: Binance Eyes Non-Crypto Acquisitions to Enlarge Total Market: Report

The consumer price index (CPI), due out at 8:30 a.m. ET on Thursday, is expected to show that the inflation rate was 0.8% in February, or 8% over the past 12 months. That would be the highest level since 1982, and faster than the 0.6% monthly clip reported for January.

Bitcoin and crypto in general will remain tied to the news out of Ukraine and continue to trade broadly in a risk off/on fashion. We feel that the CPI report on Thursday will prove to be a side event to the Russia/Ukraine situation.

Federal Reserve Chair Jerome Powell said last week he supported a 0.25 percentage point increase in short-term interest rates, which would be the first hike since 2018. The Fed has become more dovish in recent weeks as the Russia-Ukraine conflict drags on and adds concern about global oil supplies and price pressures.”

“Aiming to be a “major player” globally in digital assets, Dubai’s ruler announced the creation of a regulatory and licensing authority.

Today, through the virtual assets law, we seek to participate in the design of this new and rapidly growing global sector. The independent authority will oversee the development of the best business environment in the world for virtual assets in terms of regulation, licensing, governance, and in line with local and global financial systems.

The future belongs to whoever designs it.”

“Yesterday, Twitter, Facebook and other social media companies announced they would begin targeted attempts of removing Russian disinformation. As harmful as “fake news” and propaganda can be, there’s a strong case that evidence of this information war should be preserved.

Although private companies have every right – and sometimes the legal or moral obligation – to curate their platforms by removing or boosting content according to their own prerogatives and bottom lines, understanding history is often as dependent on remembering lies as documenting facts.

These ads, sock-puppets, false flags, distorted narratives, crisis actors and outright lies are all significant. Withholding information from public view, including articles from sanctioned media outlets and spam, might diminish our understanding of Russia’s campaign and Putin’s motivations. It might also prevent activists, writers and legal institutions from holding bad actors to account.

Decentralized crypto platforms are designed to be information-agnostic, making them potentially important venues for understanding these times of conflict. By distributing trust and replicating data across nodes worldwide, they ensure this information remains undoctored.

Open, decentralized platforms operate according to different, perhaps higher, values that information should always be readily accessible, unadulterated and durable. Several crypto exchanges, including Binance and Kraken, took a similar line when declining to follow traditional financial institutions from “freezing” Russian accounts.

Crypto, in its truest form, presents a permissive view of data and finance – both money and information should be free. This perspective places a high degree of trust and responsibility on users to think critically about what they’re consuming and in what they’re investing. But it’s perhaps the only consistent standard that can be applied.

All other ways of reckoning with or packaging information are subject to the whims of human judgment, coercion and sanction.”