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U.S. President Joe Biden to Sign Executive Order on Digital Assets to Ensure U.S. Tech Leadership

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The executive order establishes a national digital asset policy on key priorities and is the first document to take a comprehensive approach to address the risks of digital assets and the technologies underlying them

Original title: "FACT SHEET: President Biden to Sign Executive Order on Ensuring Responsible Innovation in Digital Assets"

Original compilation: Nian Qing, chain catcher

At 19:00 on March 9, Beijing time, the White House official website officially announced that President Biden will sign an executive order on ensuring responsible innovation of digital assets today , and said it was the first-ever whole-of-government approach to address the risks and potential benefits of leveraging digital assets and their underlying technologies.

U.S. National Security Advisor Jake Sullivan said the order identifies the administration's policy priorities, including cryptocurrencies and any future U.S. central bank digital currency, to help guide The development of the digital asset ecosystem.

“This executive order establishes the first comprehensive federal digital asset strategy for the United States and will help the United States in innovation and governance of the digital asset ecosystem at home and abroad. Continue to provide leadership in protecting consumers and enhancing America's global competitiveness," said Jake Sullivan.

The announcement states that surveys indicate that approximately 16% of adult Americans (approximately 40 million people) have invested in, traded or used cryptocurrencies. More than 100 countries are exploring or piloting central bank digital currencies (CBDC), a digital form of national sovereign currency.

The announcement also pointed out that the rise of digital assets has created opportunities to strengthen the leadership of the United States at the forefront of the global financial system and technology, but it also has implications for consumer protection, Financial stability, national security and climate risks have significant implications. The United States must maintain technological leadership in this rapidly evolving field, supporting innovation while mitigating risks to consumers, businesses, the broader financial system, and the climate. And, it must play a leading role in international engagement and global governance of digital assets consistent with democratic values and U.S. global competitiveness.

The executive order establishes a national digital asset policy on 6 key priorities:consumer and investor protection, financial stability, illicit financial activities, U.S. leadership in the global financial system and economic competition, financial inclusion, and responsible innovation.

Specifically, the executive order calls for actions to be taken:

1. Protect U.S. consumers, investors, and enterprise. The order also encourages regulators to ensure adequate oversight against any systemic financial risks posed by digital assets.

2. By encouraging the Financial Stability Oversight Board to identify and mitigate economy-wide (i.e., systemic) financial risks posed by digital assets, And develop appropriate policy recommendations to address any regulatory gaps, thereby protecting U.S. and global financial stability and mitigating systemic risk.

3. By directing relevant U.S. government agencies to take unprecedented coordinated actions to reduce the illegal financial and national security risks brought about by the illegal use of digital assets. It also directs agencies to work with allies and partners to ensure international norms, regulatory capacity and partnerships are aligned and responsive to risks.

4. Promote American leadership in technology and economic competitiveness by directing the Department of Commerce to work with the U.S. Government to establish a Framework to advance U.S. competitiveness and leadership in the field and utilization of digital asset technologies and strengthen U.S. leadership in the global financial system. This framework will serve as the foundation for the institution and prioritize its policy, research and development, and operational approach to digital assets.

5. Promote equitable access to safe, affordable financial services through safe, affordable, and accessible financial services, a critical need of the United States national interest services, must inform our approach to digital asset innovation, including different impact risks. This secure access is especially important for long-standing communities where adequate financial services are not available, and the Secretary of the Treasury will work with all agencies to produce a report on the future of money and payment systems, including considerations for economic growth, financial growth and inclusion The implications for national security, and the extent to which technological innovations affect the future.

6. Support technological progress to ensure responsible development and use of digital assets. The approach is to direct the U.S. government to take concrete steps to research and support technological advances in the design and implementation of responsible development of digital asset systems, while prioritizing privacy, security, combating illicit exploitation, and reducing negative climate impacts.

7. Explore a U.S. Central Bank Digital Currency (CBDC), considering research and development of a potential U.S. CBDC as in the national interest. The order directs the U.S. government to assess the technical infrastructure and capacity needs of a potential U.S. CBDC in a manner that protects the interests of Americans. The order also encourages the Federal Reserve to continue its research development and evaluation efforts for a U.S. CBDC, including developing a broader U.S. government action plan to support its work. This work prioritizes U.S. participation in multinational trials and ensures U.S. leadership internationally in promoting CBDC development consistent with U.S. priorities and democratic values.

Finally, the White House also stated that the administration will continue to work across agencies and with Congress to formulate policies that prevent risks and guide responsible innovation, and develop with allies and partners Coordinated international capabilities to address national security risks and work with the private sector to research and support technological advancements in digital assets.