U.S. President Joe Biden signed a long-awaited executive order on crypto assets on March 9, 2022, establishing a “national policy for digital assets across six key priorities,” according to the White House. The order was originally expected at the end of February but was delayed due to Russia’s invasion of Ukraine. The White House described the order as “the first-ever, whole-of-government approach to addressing the risks and harnessing the potential benefits of digital assets and their underlying technology.”
Six Key Priorities for Digital Assets
The executive order directs various federal departments and agencies to develop policy recommendations within specific timeframes for the following priorities:
1. Protect U.S. Consumers, Investors, and Businesses. The Treasury Department and other agencies are tasked with assessing and proposing policies to ensure fair and transparent markets.
2. Protect U.S. and Global Financial Stability. The order calls for ongoing monitoring and assessment of systemic risks posed by digital assets.
3. Mitigate Illicit Finance and National Security Risks. The White House emphasized an “unprecedented focus of coordinated action across all relevant U.S. government agencies” to address risks associated with the illicit use of digital assets, including working with international allies.
4. Promote U.S. Leadership in Technology and Economic Competitiveness. The Department of Commerce will establish a framework to reinforce U.S. dominance in the global financial system.
5. Support Technological Advances and Responsible Development. The order encourages innovation while ensuring responsible deployment of digital asset technologies.
6. Explore a U.S. Central Bank Digital Currency (CBDC). The administration elevated CBDC research to the “highest urgency,” directing agencies to assess the potential issuance of a digital dollar.
Key Officials Respond
Treasury Secretary Janet Yellen issued a statement calling the executive order “historic” and emphasizing that the Treasury Department, along with interagency partners, will build upon recently published National Risk Assessments to identify key illicit financing risks. She also noted that the order aims to “promote equitable access to safe and affordable financial services” and that a report on the future of money and payment systems must be submitted to the President within 180 days.
SEC Chairman Gary Gensler commented: “I look forward to collaborating with colleagues across the government to achieve important public policy goals: protecting investors and consumers, guarding against illicit activity, and helping ensure financial stability.”
The executive order signals a major shift in U.S. crypto policy from a wait-and-see approach to proactive regulation and innovation promotion. The market reacted positively, with Bitcoin’s price seeing a modest uptick following the announcement. The order also sets the stage for potential legislation, as Congress is expected to take up crypto-related bills in the coming sessions.
Overall, the Biden administration’s move is seen as a balanced attempt to foster innovation while mitigating risks, positioning the United States to maintain technological leadership in the rapidly growing digital asset space.