President Biden signed an Executive Order (EO) on Wednesday that outlines his administration’s goals for the regulation of digital assets. We believe this is a positive development for the crypto ecosystem. 

The EO presents a serious and balanced perspective, a shift away from the ill-informed narratives that crypto is a safe haven for fraudulent and criminal activity. We are particularly pleased by the acknowledgement of our industry’s importance and potential. This is a clear sign our educational efforts are working and that the coalition of pro-crypto voices has grown large, diverse, and influential.

While the EO does not create any specific regulatory clarity, it does serve as a critical starting point for constructive discussion on public policy and crypto. The US lags many other countries in regulatory guidance in this space. This has limited innovation, as entrepreneurs fear heavy-handed actions and ambiguity makes it difficult to plan for the future. US leadership on this front is important not only for the size of its market, but also for its role as a global leader in financial regulation.  

 

We are optimistic President Biden’s order will lead to clarity for important issues like crypto exchange regulation, rules for broker-dealers, and the approval of spot ETFs. But we also appreciate that the US regulatory process is highly complex and there will be friction around these topics in the coming months and years.  

 

In the near term, it’s business as usual at Hashdex. We’ve always been a compliance-first company with investment products designed to prioritize security. As regulatory uncertainty remains a part of the current landscape, we’ll continue to work to expand our capabilities in the US and globally to give investors simple and safe access to these exciting markets.  

 

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