Legacy Suite Says Biden Executive Order on Crypto Could Provide Blueprint for Industry's Growth
President of digital asset management solution developer sees potential for policies to spur greater consumer and business adoption of cryptocurrencies and government investment in infrastructure.
NEW YORK, April 20, 2023 (Newswire.com) - President Biden recently signed an executive order establishing a national policy on digital assets, including cryptocurrencies. The order creates an opportunity for policies that, if designed properly, could promote wider adoption of cryptocurrencies by consumers or businesses, according to Gordon Bell, President of Legacy Suite, developers of a comprehensive digital asset management solution including a crypto wallet and monitoring.
The executive order, signed March 9, recognizes the tremendous scope of digital assets, including cryptocurrencies. The market capitalization of cryptocurrencies is more than $1 trillion, and about 16% of Americans - approximately 40 million people - have invested in, traded, or used cryptocurrencies.
Bell, a Harvard-educated financial analyst with three decades of experience in investment banking and portfolio management, sees the Biden Administration's action as a potential boon for the digital asset field.
"While government regulation can often hinder a business, in this case, we believe a supportive regulatory environment can play a significant role in inspiring the mass adoption of cryptocurrency, by providing a clear legal framework for its use and reducing its perceived risks," Bell said.
The executive order addresses multiple issues, several of them essential to the growth of digital assets. They include:
- Developing policies to protect consumers, investors and businesses.
- Supporting technological advances and responsible development of digital assets, while prioritizing privacy and security and reducing climate impacts.
- Promoting equitable access to safe and affordable financial services, with an approach to digital asset innovation that aids communities lacking access to financial services.
Bell cited the example of the regulation of security token issuances, or any issuances, as a means of providing investor protection and benefiting the crypto sector as a whole.
"Taken as a whole, government regulations can help establish a sense of legitimacy and trust in the cryptocurrency market, providing a level of certainty and stability that is crucial for consumer acceptance," he said.
Bell hopes to see the executive order lead to measures designed to prevent fraud, protect consumers, and ensure that exchanges and other cryptocurrency-related businesses comply with anti-money laundering and know-your-customer regulations.
However, Bell said the Biden policies should go beyond measures that inspire consumer confidence, to providing direct support to the cryptocurrency sector.
One powerful step would be government investment in blockchain technology, the underlying technology behind cryptocurrencies. "That would demonstrate a commitment to innovation and support the development of a robust and secure digital infrastructure," Bell said. "In turn, that would encourage the private sector to develop more use cases for blockchain and cryptocurrencies, which can ultimately spur wider adoption."
Finally, government tax policies also can play a strong role in promoting widespread adoption of digital assets, Bell said. He suggested tax incentives, such as exemptions for certain types of cryptocurrency transactions from taxes, or tax breaks for businesses that use digital assets for payments, as tools to encourage transactions in digital assets.
"Clearly, the Biden Administration recognizes the enormous potential benefits of digital assets, but also the potential risks to consumers from rapid growth with no oversight," Bell said. "Having one unifying framework for the government's cryptocurrency policies can inspire confidence in the market and facilitate the transition to a more decentralized, digital economy."
About Legacy Suite
Legacy Suite is a complete end-to-end solution providing first-class digital estate planning support, including wallet monitoring and crypto wallet. Legacy Suite is a secure solution for crypto self-custody and password management, which allows you to hold your own keys, set up directives, assign executors, and have peace of mind knowing that your digital assets will safely transfer to your next of kin.
Source: Legacy Suite