The Executive Order signed by President Biden lays out a national policy for digital assets across six key priorities: consumer and investor protection, financial stability, illicit finance, U.S. leadership in the global financial system and economic competitiveness, financial inclusion, and responsible innovation. An Innovative Digital Asset approach is a priority for the U.S.
The Executive Order on Ensuring Responsible Development of Digital Assets signed on 3/9/22 acknowledges how the rise in digital assets creates an opportunity to reinforce the leadership of the U.S. in the global financial system as well as its implications for consumer protection, financial stability, national security, and climate risk.
In sum, the Executive Order calls for a “Holistic Approach” involving all the moving parts of the U.S. Government as follows:
- Department of the Treasury and other agency partners to assess and develop policy recommendations to address the implications of the growing digital asset sector and changes in financial markets for consumers, investors, businesses, and equitable economic growth.
- Regulators to ensure sufficient oversight and safeguard against any systemic financial risks posed by digital assets.
- Financial Stability Oversight Council to identify and mitigate economy-wide financial risks posed by digital assets and to develop appropriate policy recommendations to address any regulatory gaps.
- U.S. Government agencies to mitigate the Illicit Finance and National Security Risks Posed by the Illicit Use of Digital Assets via a coordinated action.
- Agencies to work with US’s allies and partners to ensure international frameworks, capabilities, and partnerships are aligned and responsive to risks.
- Department of Commerce to work across the U.S. Government in establishing a framework to drive U.S. competitiveness and leadership in and leveraging of digital asset technologies.
- The Secretary of the Treasury, working with all relevant agencies, will produce a report on the future of money and payment systems, to include implications for economic growth, financial growth and inclusion, national security, and the extent to which technological innovation may influence that future.
- U.S. Government to take concrete steps to study and support technological advances in the responsible development, design, and implementation of digital asset systems while prioritizing privacy, security, combating illicit exploitation, and reducing negative climate impacts.
- U.S. Government to assess the technological infrastructure and capacity needs for a potential U.S. Central Bank Digital Currency (CBDC) in a manner that protects Americans’ interests.
- The Federal Reserve to continue its research, development, and assessment efforts for a U.S. CBDC, including development of a plan for broader U.S. Government action in support of their work.
Although no federal agency issued new regulations, the Executive Order is clear in that all the federal departments must coordinate and work together. Teamwork! ©