Former White House Adviser: Biden's Executive Order on Crypto Is 'Balanced' but ‘Gaps’ Remain

Carole House, co-author of President Biden’s executive order on crypto, discusses why the framework is “balanced” in mitigating risks but still has existing gaps.

AccessTimeIconDec 8, 2022 at 9:07 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Which federal agency should regulate crypto? That still needs to be worked out, said Carole House, a former director of cybersecurity and secure digital innovation for the White House who co-authored President Joe Biden’s executive order on crypto.

She told CoinDesk TV’s “First Mover” on Thursday the March executive order took what she called a “balanced” approach to overseeing the crypto industry, but there are still “gaps” that need to be filled.

“White House staff was looking at what every stakeholder was saying, including a lot of people that we disagreed with, or agreed with,” she said.

However, “I think the executive order really pointed to the fact that … there's not a clear picture of exactly all of the different things that need to be put in place to fill some of the existing gaps. But there's also an acknowledgement of the already long-existing framework that covers so much of the activity in this space, and the fact that absence of sufficient compliance with those long-existing obligations still has to be sufficiently prioritized and enforced,” she said.

House acknowledged the ongoing discussions in Congress on how to regulate crypto. However, where those areas of enforcement should be “expanded, strengthened and clarified” and by which agency have yet to be defined.

President Biden issued his executive order to ask federal agencies to coordinate how they deal with the digital asset industry. The first-of-its-kind order is focused on consumer protection, including financial inclusion and stability risks, as well as crypto’s illicit use cases, responsible innovation and maintaining a position of leadership in the global economy.

House, now an executive-in-residence at venture capital firm Terranet Ventures, said the executive order “was properly balanced” and it focused on mitigating risks while still adhering to the potential innovation behind blockchain technology.

The administration “has an opportunity to take a position,” according to House, with the ultimate goal of helping to influence legislation on which agency should be responsible for regulating the crypto spot market.

The result could spread beyond U.S. borders by setting standards for crypto, which could in turn prompt other countries to follow suit, according to House. “The United States is really the key country that’s bringing enforcement actions,” she said.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Fran Velasquez

Fran is CoinDesk's TV writer and reporter.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.