On March 9, U.S. President Joe Biden signed an Executive Order on digital assets through which he seeks to establish a national policy around six 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. The national government said it will continue to work through all of its agencies, as well as with Congress and the private sector to establish policies that protect against risks and support technological advances in digital assets.
In terms of consumer and business protection the Executive Order instructs the Treasury Department to develop policy recommendations around the implications of this sector, as well as encourages regulators to ensure sufficient oversight and safeguard against any systemic financial risks posed by digital assets. In addition, the government directive requests the Treasury Secretariat to prepare a report on the future of money and payment systems.
Moreover, the decree proposes to explore the possibility of developing a U.S. central bank digital currency (CBDC), should its issuance be deemed to be in the national interest. To do so, the government will need to assess the technological infrastructure and capacity needs in a manner that protects the interests of Americans. The U.S. government believes that the rise of digital assets creates an opportunity to strengthen U.S. leadership in the global financial system, for which it will also need to work with allies and partners to ensure that international frameworks, capabilities, and partnerships are aligned and responsive to risks.