A long-awaited executive order on cryptocurrency arrived. On balance, the assessment of the crypto community is that it is a positive development.

The Biden administration is signaling that it intends to support digital asset growth and innovation while protecting investors from risks associated with the emerging industry.

The executive order has quelled fear of heavy-handed regulation of bitcoin and other cryptocurrencies in the near term. Instead, it recognizes that digital assets are here to stay:

“The United States must maintain technological leadership in this rapidly growing space, supporting innovation while mitigating the risks for consumers, businesses, the broader financial system, and the climate.”

That said, the directive is notably thin on substance, calling for "research" and "investigation" of various facets of crypto.

Much of this work is expected to take place over the next six months.

Central Bank Digital Currencies (CBDCs) were highlighted in the directive. Apparently, the Biden administration is watching other countries launch CBDCs and is taking steps to prevent the United States falling behind.

Although the distributed nature of the bitcoin network ensures that it will survive without regard to the opinions of a US president, an executive order calling for immediate regulation of would have a negative effect on the price of bitcoin in the near term.

Luckily, that is not an issue for the time being.

The Biden administration has now stated that cryptocurrencies will play a major role in the world economy. This is a reason for optimism for the near-term growth of the bitcoin network, and also for the long-term viability of the U.S. economy.

If we really are in the final years or decades of the dollar's primacy, the adoption by Americans of crypto, and bitcoin specifically, may decide the fate of the nation.

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