Earlier this year, President Biden issued an Executive Order on Ensuring Responsible Development of Digital Assets to align the US government’s regulatory approach in response to the ever-growing development and adoption of digital assets and blockchain technology. The Order acknowledges that digital assets are a double-edged sword that brings significant benefits and opportunities, like financial gain, faster, cheaper cross-border settlements, and financial inclusion, but also presents equally significant economic, security, and environmental dangers. The Order signals that the US is prepared to wield this sword, but that a coordinated, whole-of-government approach is needed to both seize the benefits and guard against the risks.

As legislation seeks to catch up with enforcement, companies operating within this space will face stricter regulatory and enforcement regimes. Crypto companies are operating in an inherently nebulous market, and robust compliance procedures, such as documentation related to risk tolerance and judgments, will better prepare companies in an area experiencing increasing regulatory scrutiny and threat of enforcement action.

Read the full article in Cryptonews.