Republican lawmakers Warren Davidson of Ohio and Mike Flood of Nebraska have raised several questions about the change in stance of the Biden Administration towards cryptocurrency over the past few weeks. In March 2022, the White House had issued an executive order which was seen in a positive light by the crypto industry. However, a month later, in the Economic Report of the President, administration had a completely different stance and called out the asset class as "speculative" investments with "little fundamental value".

Congressmen Davidson and Flood have asked the White House Council of Economic Advisers Under Chair Cecilia Rouse to explain their rationale on the conflicting regulations and legislations related to cryptocurrency. The letter sent by the Congressmen to Chair Rouse also questions if legislation is required to protect the interests of firms and consumers in the sector. The letter also requests an explanation on how an American Central Bank Digital Currency (CBDC) and The FedNow Instant Payment System would be more inclusive than digital assets.

Cryptocurrency was once seen as a way to broaden access to financial services for those who were excluded from having access to the financial institutions. The emerging asset class has certainly had its battle with the government. The Biden Administration is likely to continue their "change in tone," as the Congressmen put it, unless their questions are addressed. The Republicans have requested a response from August by May 26. If the Council provides a detailed explanation of their stance on cryptocurrency, then it is possible that a clearer stance by the administration will be established. It will certainly be interesting to get a capacity of how the Council responds to the questions raised by the Republican Congressmen.



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