The Executive Order’s key policy goals give some indication of the Biden Administration’s current thinking about how these policy recommendations may develop. Indeed, the multiplicity of agencies and the independence of the Federal Reserve and the SEC in particular make it less likely that this process will clearly delineate the powers of the different agencies. In addition, by placing an interagency process at the center of each of the key policy objectives, the Executive Order does not resolve any of the hard questions regarding the proper role and jurisdiction of each of the many Executive Branch and independent agencies that seek authority relating to digital assets. Instead, the Executive Order recognizes key policy goals and then establishes a deliberative process to adopt concrete proposals to best help the federal government to achieve those goals. For example, the Executive Order does not direct federal agencies to adopt any particular policies relating to consumer or investor protection, and it does not establish standards for identifying uses of cryptocurrency that may threaten national security. ![]() The Executive Order notably does not resolve any of the more difficult policy questions frequently discussed in connection with the regulation of blockchain technology and cryptocurrencies. Given the breadth of the topics covered, the upcoming months may prove to be a critical time for developing policies that could shape how blockchain technology and cryptocurrencies develop in the coming years and possibly, decades. In all, the Executive Order mandates the coordination of 18 different reporting or research initiatives among a diverse group of federal agencies, and the required reports will be due from June to October, with a plurality due September. To promote these objectives, President Biden directs senior government officials to participate in an interagency process that will produce reports on a variety of topics relating to digital assets and their role in the financial system. While the Executive Order attempts to balance the risks and potential benefits of digital assets, it focuses on and prioritizes addressing the risks. The Executive Order specifies key policy objectives to guide this effort: (1) protecting US consumers, investors, and businesses (2) preserving the stability of the US and global financial systems (3) preventing illicit finance and national security risks (4) reinforcing US leadership in the global financial system and technological competitiveness (5) promoting access to safe and affordable financial services and (6) promoting responsible technological development. 1 The President’s order represents the first time that the White House has sought to develop a coordinated plan for the regulation and development of digital assets, and it thus represents an important first step in direction of a consistent regulatory policy. ![]() On Wednesday, March 9, President Biden issued an Executive Order entitled Ensuring Responsible Development of Digital Assets. The Executive Order raises important questions on whether existing legal frameworks are adequate to accommodate sound Executive Branch and independent agency policies, potentially inviting further consideration of new legislation. ![]() ![]() The next six months will be a critical time for federal agencies to develop policies that could shape federal policy for the next decade-and beyond.The recently issued Executive Order does not resolve important policy questions, but recognizes and endorses the potential benefits of blockchain technology and adopts a process for mitigating the risks that could stunt the growth of the cryptocurrency industry.
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