It has been reported in previous days that President Joe Biden will sign an Executive Order regarding the regulation of digital assets. Earlier this morning, the White House issued a Press Brief with policy guidelines to foster innovation with responsibility and equitable growth. It is expected that the Executive Order will be signed later today.
The statement comes timely amidst Russia’s invasion of Ukraine where cryptocurrencies have been lifesavers to channel financial aid to Ukrainians sheltering in neighboring countries and simultaneously, they could be helping Russia to circumvent financial sanctions.
In both directions, the digital assets industry is picking up speed such that the landscape for the US indicates the need to step on the gas, catch up and seek leadership in the digital asset concert.
The outlined regulatory strategy will endure consumer protection, financial stability, national security, and climate risks. The Executive Order addresses the Department of the Treasury to assess the impacts of the growing digital asset sector in financial markets, businesses, consumers, and equitable economic growth calling for regulatory measures with sufficient oversight and safeguards against systemic risks. It requests the Financial Stability Oversight Council to identify and establish mitigation measures against financial risks posed by digital assets and develop the correspondent policy recommendations.
The Executive Order requests coordinated action amongst US Government agencies to mitigate illicit finance and national security risks within allies and partners across the globe in order to ensure an aligned international framework with capacities and responsiveness.
“The United States must maintain technological leadership” quotes the press announcement where President Biden instructs the Department of Commerce to lead and work with US Agencies to develop a framework with the foundational basis to drive US competitiveness and leadership leveraging of digital asset technologies.
Moreover, the statement requests the Department of the Treasury to work with all relevant agencies to produce a report on the future of money and payment systems, including implications for economic growth, financial growth, and inclusion, national security whilst evaluating the scope of technological innovations influencing that future.
Finally, it places an important relevance to the urgency on research and development of a potential Central Bank Digital Currency (CBDC) by assessing the technological infrastructure, required capacities and encourages the Federal Reserve to keep on the research programs.