--- title: Why Joe Biden's Plans to Regulate Crypto Could Be Good for Investors description: Joe Biden's executive order establishes new regulations on cryptocurrencies. Here's what it could mean for crypto adoption (and prices). authors: - name: Mallika Mitra role: Contributing Editor url: https://money.com/author/mallika-mitra/ bio: Mallika Mitra is a contributing editor for Money, based in Chicago. She has covered investing and retirement for seven years and her work has appeared in CNBC, Bloomberg, Kiplinger, AARP, Barron’s, Bankrate, The Daily Upside, ETF.com, The Bond Buyer, PLANADVISER, PLANSPONSOR and Investopedia. education: Craig Newmark Graduate School of Journalism at CUNY Kalamazoo College at_money_since: 2020 articles: 395 covers: - Investing - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Retirement - Shopping - Taxes - Technology also_seen_in: - CNBC - Bloomberg - Kiplinger - Barron's - Bankrate - WGN-TV - CBS News Radio - This Morning With Gordon Deal - Everyone's Talkin' Money social: - https://twitter.com/mitra_mallika - https://www.linkedin.com/in/mallika-mitra-4577a386/ published: '2022-03-09T17:22:57.000Z' modified: '2024-01-10T17:19:49.000Z' section: Investing tags: - Cryptocurrency - News word_count: 820 canonical: https://money.com/joe-biden-crypto-regulations-good-investors/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Collage of Joe Biden with a Bitcoin, Litecoin, Ripple Coin and Ethereum coin in the background](https://img.money.com/2022/03/News-Joe-Biden-Will-Regulate-Cryptocurrency.jpg) Regulation is coming for the cryptocurrency market. That's likely a good thing for crypto investors, experts say. President Joe Biden signed an executive order Wednesday morning to establish the first-ever federal U.S. strategy on [cryptocurrencies](https://money.com/what-is-cryptocurrency/) and any future U.S. central bank digital currency. The executive order calls on regulators including the Treasury Department to assess the risks of digital currencies, develop policy recommendations and "ensure sufficient oversight and safeguard against any systemic financial risks posed by digital assets," according to a White House [fact sheet.](https://www.whitehouse.gov/briefing-room/statements-releases/2022/03/09/fact-sheet-president-biden-to-sign-executive-order-on-ensuring-responsible-innovation-in-digital-assets/) In a [statement](https://www.whitehouse.gov/briefing-room/statements-releases/2022/03/09/statement-by-nec-director-brian-deese-and-national-security-advisor-jake-sullivan-on-new-digital-assets-executive-order/) from the White House, National Economic Council Director Brian Deese and National Security Advisor Jake Sullivan said, "Fundamentally, an American approach to digital assets is one that encourages innovation but mitigates the risks to consumers, investors, and businesses, broader financial stability, and the environment." Crypto prices jumped on the news, with [bitcoin](https://money.com/what-is-bitcoin/) climbing more than 9% from its 5 pm E.T. price Tuesday, according to data from CoinMarketCap. Bitcoin's price was around $42,000 per coin as of Wednesday morning. The price increase initially started Tuesday after the Treasury Department [reportedly](https://www.wsj.com/articles/biden-to-order-study-of-cryptocurrency-risk-creation-of-u-s-digital-currency-11646823600?mod=hp_lead_pos2) accidentally published a statement on the executive order, which hadn't yet been officially announced. While some cryptocurrency advocates are anti-regulation due to concerns that it could hurt innovation, experts say regulation could actually be a positive thing for crypto adoption, safety and more. Around 16% of adult Americans — approximately 40 million people — have invested in, traded or used cryptocurrencies, according to the White House fact sheet. But because of the lack of government oversight and extreme price volatility, many investors have been hesitant to jump on the crypto bandwagon, and [financial advisors have held off on recommending](https://money.com/financial-advisors-cryptocurrency-bitcoin/) it in portfolios. That could change with more regulation, says Edward Moya, senior market analyst at foreign exchange trading firm OANDA. "If the average investor feels much more confident in the crypto space being safer, there could be tremendous growth here," Moya says. "A lot of investors would become more excited about it." John Wu, president of Ava Labs, which supports the development of the Avalanche public blockchain, agrees that regulation could help spur adoption. "Users, businesses, and projects would have clear guidelines for what they can do and responsibilities like taxes and compliance reporting," Wu told Money via email. ## How regulations could affect crypto prices While it's hard to say what will happen to crypto prices in any given period of time, regulations could boost crypto prices over the long-term. The overall crypto market cap — which currently sits around $1.8 trillion — could double within two years if a successful round of regulations is put in place, Moya says. Down the road, when regulations allow the market to stabilize, volatility will subside a little, Tally Greenberg, head of business development at Allnodes told Money via email. There will be fewer assets that hype overnight for the wrong reason, which is a positive development, Greenberg added. Roughly $14 billion in fraudulent transactions occurred in the cryptocurrency world in 2021, up by 79% from a year earlier, according to data firm Chainalysis, Money previously [reported](https://money.com/popular-crypto-scams-2022/). Securities and Exchange Commission chairman Gary Gensler has [called](https://www.sec.gov/news/public-statement/gensler-aspen-security-forum-2021-08-03) crypto the "the Wild West" due to the lack of investor protection. The White House's order is looking to change this, as it will "safeguard the long-term efficacy of critical national security tools like sanctions and anti-money laundering frameworks," according to Deese and Sullivan. Experts say more safety in the space is welcome. "Better security is required for crypto exchanges and investors that frequent these platforms," Greenberg says. ## How crypto regulations could spur innovation Biden's order will "help position the U.S. to keep playing a leading role in the innovation," of the digital assets ecosystem at home and abroad, according to the White House's statement — and experts agree that regulation could actually help with technological growth in the crypto industry. "It could be an amazing opportunity for the U.S. to solidify a comprehensive, but pragmatic policy framework for cryptocurrencies that not only spurs more innovation, but entrenches the U.S. as a leader in blockchain and internet-based economies," Wu says. Having additional consumer protection put in place could provide a path to more products for crypto investing, like the [bitcoin exchange-traded fund](https://money.com/when-will-sec-approve-bitcoin-etf/?ref=/bitcoin-futures-etf-price-mismatch/) crypto advocates have long been pushing for. Cameron Winklevoss, co-founder of crypto exchange Gemini, called the executive order "a watershed moment" that "paves the way for thoughtful national crypto regulation that will allow builders to build onshore and ensure that the US remains a leader in crypto," in a [tweet](https://twitter.com/cameron/status/1501591825659822080) Wednesday. "Crypto innovation is not just about a new asset class, but also creating transformational financial infrastructure that eliminates unnecessary intermediaries, democratizes participation, and empowers all of us," Winklevoss added. ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/joe-biden-crypto-regulations-good-investors/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Investing", "item": "https://money.com/investing/" }, { "@type": "ListItem", "position": 3, "name": "Cryptocurrency", "item": "https://money.com/cryptocurrency/" }, { "@type": "ListItem", "position": 4, "name": "Why Joe Biden's Plans to Regulate Crypto Could Be Good for Investors" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/joe-biden-crypto-regulations-good-investors/#webpage", "url": "https://money.com/joe-biden-crypto-regulations-good-investors/", "name": "Why Joe Biden's Plans to Regulate Crypto Could Be Good for Investors", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2022-03-09T17:22:57.000Z", "mainEntity": { "@id": "https://money.com/joe-biden-crypto-regulations-good-investors/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/joe-biden-crypto-regulations-good-investors/#breadcrumb" }, "dateModified": "2024-01-10T17:19:49.000Z" }, { "@type": "NewsArticle", "headline": "Why Joe Biden's Plans to Regulate Crypto Could Be Good for Investors", "articleSection": "Investing", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2022/03/News-Joe-Biden-Will-Regulate-Cryptocurrency.jpg", "width": 1528, "height": 1019, "caption": "News-Joe-Biden-Will-Regulate-Cryptocurrency" } ], "author": [ { "@type": "Person", "name": "Mallika Mitra", "url": "https://money.com/author/mallika-mitra/", "@id": "https://money.com/author/mallika-mitra/#author", "description": "Mallika Mitra is a contributing editor for Money, based in Chicago. 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