Biden's Executive Order on Digital Assets: What You Need to Know

Executive Order on Digital Assets

The Biden administration is reportedly ready to unveil an executive order directing various government agencies to dive into the digital asset space. This move aims to create a comprehensive regulatory framework to make sense of the increasingly complex world of cryptocurrencies and digital currencies.

A Multi-Agency Approach

The order is expected to involve multiple federal agencies, including:

The Office of the Attorney General
The State Department
The Treasury Department

These agencies will look into the feasibility of introducing a central bank digital currency (CBDC) and assess the infrastructure required for a digital dollar.

Timeline for Evaluation

Alondra Nelson, the newly appointed director of the Office of Science and Technology Policy, will spearhead the evaluation efforts. A detailed report on distributed ledger technology is expected within 180 days, with insights into its environmental impact to follow in about 545 days.

Financial Stability and Market Protection

The Financial Stability Oversight Council will investigate potential financial stability issues stemming from cryptocurrencies. Key players like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) will analyze the overall market protection measures needed to minimize risks associated with crypto.

Consumer Safety and Market Competition

Moreover, agencies like the Consumer Financial Protection Bureau and the Federal Trade Commission will examine how digital assets impact market competition. They will also evaluate privacy concerns related to this vibrant new sector.

The Historical Context

Interestingly, executive orders concerning cryptocurrencies have been rather rare in U.S. history. In March 2018, President Trump issued an order prohibiting U.S. citizens from trading in Venezuela’s Petro token, citing digital currency fraud in the process. Additionally, President Obama hinted at the government’s ability to seize digital assets involved in malicious cyber activities back in 2015.

“The future of money is here, and we’re just trying to keep up.” – A government official, probably.

In contrast, President Biden has now signed a total of 81 executive orders since taking office in January 2021, highlighting an increasingly proactive approach to digital asset regulation.