New regulations and legislation for cryptocurrency are being awaited by traders, as ordered by Biden.

• On Wednesday, President Biden issued an executive order instructing government agencies to collaborate in regulating cryptocurrencies and other digital assets.
• According to the administration, approximately 16% of American adults have engaged in crypto investment, trading or usage.
• Brian Deese, White House economic advisor, stated that a comprehensive, all-of-government framework is necessary to tackle the emerging risks and opportunities presented by digital assets.
• The executive order signed by Biden has been deemed a "turning point" by Cameron Winklevoss, the president of Gemini Trust.

On Wednesday, President Biden issued an executive order instructing government agencies to assess the advantages and disadvantages of owning cryptocurrencies and to determine whether the US should establish its own digital currency.

Gary Gensler, Securities and Exchange Commissioner, has compared the current market to the "Wild West" and stated that the administration's latest effort to regulate the industry is its broadest attempt yet to protect consumers, investors, and the American economy from potential risks.

In recent years, digital assets, including cryptocurrencies, have experienced a surge in popularity and reached a value of over $3 trillion in November, according to a White House fact sheet. Approximately 16% of American adults, or about 40 million people, have invested, traded, or used cryptocurrency, the administration stated.

The Commerce and Treasury departments will coordinate the federal approach to regulating digital assets, as instructed by the White House.

On Wednesday morning, CNBC reported that Brian Deese, director of Biden's National Economic Council, stated that a comprehensive, all-of-government framework is necessary to tackle the emerging risks and opportunities presented by digital assets.

The benefits of the financial and technological innovations driving this growth are significant, but the risks and costs are becoming more evident," he stated. "A modern government structure is necessary to tackle this issue.

The value of Bitcoin, one of the world's most widely used cryptocurrencies, reached approximately $42,300 on Wednesday, as reported by Coin Metrics.

Numerous regulatory bodies, such as the SEC, CFTC, and FSOC, have spent years attempting to adapt existing legal frameworks to regulate the emerging markets for cryptocurrencies like bitcoin and ethereum, as well as thousands of other tokens and assets.

Rewritten: Both investors and lawmakers agree that the current measures are inadequate to regulate the emergence of a rapidly growing market and establish the U.S. as a global leader in the industry.

Gemini Trust president Cameron Winklevoss stated on Wednesday that Biden's executive order represents a "watershed moment" for the crypto industry.

He wrote that it creates a path for thoughtful national crypto regulation, enabling builders to construct onshore and maintain the US's position as a leader in crypto.

The WH acknowledges the significance of collaboration between various agencies, including federal and state, as well as Congress, in order to establish a unified and comprehensive public policy framework.

But Winklevoss isn’t alone in that thinking.

Clifford Cone, a partner at law firm Clifford Chance, stated in an interview that agencies have been hesitant to act as enforcers without congressional approval. He emphasized the importance of bringing together various regulators, lawmakers, and industry representatives in a single room to establish a regulatory framework.

"This asset class, which has grown significantly and has numerous competing interests, is not going away, as many of us have desired for years due to the lack of guidance available," Cone stated on Wednesday morning.

The asset class doesn't fit neatly into any of our existing securities or commodities regulatory frameworks, which has led to hesitation within the SEC and CFTC to move forward with responsible rules-based guidance.

The attorney who represented VanEck in the company's quest for SEC approval for a bitcoin fund in 2021 stated that many on Wall Street are eagerly anticipating more guidance from Congress in 2022.

Hoping to fill the legislative void around digital assets is Sen. Cynthia Lummis.

For months, the Wyoming Republican has been working on a bill aimed at addressing fundamental, yet unresolved issues regarding the regulation of digital assets in the U.S.

The bill, though not yet available, may contain instructions on what qualifies as a digital "security" versus a "commodity," establish new digital market laws to regulate assets and exchanges, and outline the authority of federal regulators to enforce them.

The SEC chief stated in September that there is insufficient investor protection in crypto finance, issuance, trading, and lending. He compared the current state to the Wild West or the era of "buyer beware" before securities laws were implemented.