FACT SHEET: White House Releases First-Ever Comprehensive Framework for Responsible Development of Digital Assets – September 16, 2022 -Following the President’s Executive Order, New Reports Outline Recommendations to Protect Consumers, Investors, Businesses, Financial Stability, National Security, and the Environment – The digital assets market has grown significantly in recent years.
Millions of people globally, including 16% of adult Americans, have purchased digital assets—which reached a market capitalization of $3 trillion globally last November. Digital assets present potential opportunities to reinforce U.S. leadership in the global financial system and remain at the technological frontier. But they also pose real risks as evidenced by recent events in crypto markets. The May crash of a so-called stablecoin and the subsequent wave of insolvencies wiped out over $600 billion of investor and consumer funds. President Biden’s March 9 Executive Order (EO) on Ensuring Responsible Development of Digital Assets outlined the first whole-of-government approach to addressing the risks and harnessing the potential benefits of digital assets and their underlying technology.
Over the past six months, agencies across the government have worked together to develop frameworks and policy recommendations that advance the six key priorities identified in the EO: consumer and investor protection; promoting financial stability; countering illicit finance; U.S. leadership in the global financial system and economic competitiveness; financial inclusion; and responsible innovation. The nine reports submitted to the President to date, consistent with the EO’s deadlines, reflect the input and expertise of diverse stakeholders across government, industry, academia, and civil society. Together, they articulate a clear framework for responsible digital asset development and pave the way for further action at home and abroad..”
Government reports on digital assets responsive to Biden’s Executive Order on crypto
Follow-up to September 16, 2022 White House Framework on Regulating Cryptocurrency, please see the following documents related to the directive re Ensuring Responsible Development of Digital Assets:
- September 16, 2022 – “The White House Office of Science and Technology Policy (OSTP) is publishing its report, Technical Evaluation for a U.S. Central Bank Digital Currency System, which lays out policy objectives for a potential U.S. CBDC system and analyzes key technical design choices for a U.S. CBDC system. The report also estimates the technical feasibility of building a CBDC minimum viable product and describes how a U.S. CBDC system might affect Federal operations. The report makes recommendations on how to prepare the Federal Government for a U.S. CBDC system. Importantly, the report does not make any assessments or recommendations about whether the U.S. should pursue a CBDC, nor does it make any decisions regarding particular design choices for a potential U.S. CBDC system.”
- September 16, 2022, the U.S. Department of the Treasury published three reports pursuant to Sections 4, 5 and 7 of President Joe Biden’s Executive Order 14067 on “Ensuring Responsible Development of Digital Assets.” The reports address the future of money and payment systems, consumer and investor protection and illicit finance risks. The reports and their recommendations are as follows: Section 4: The Future of Money and Payments; Section 5: Implications for Consumers, Investors, and Businesses; and Section 7: Action Plan to Address Illicit Financing Risks of Digital Assets
- U.S. Department of the Treasury Report, September 2022, The Future of Money and Payments Report Pursuant to Section 4(b) of Executive Order 14067
- June 6, 2022 – U.S. Department of Justice, The Report of the Attorney General Pursuant to Section 8(b)(iv) of Executive Order 14067: How To Strengthen International Law Enforcement Cooperation For Detecting, Investigating, And Prosecuting Criminal Activity Related To Digital Assets