Digital Article Repository: Shaping the World of Digital Assets
Shaping the World of Digital Assets
March 9, 2022 — The White House issued an Executive Order outlining a coordinated approach among federal regulatory agencies to address the risks and opportunities associated with digital assets and cryptocurrencies. In addition to supplying details on the EO, we have provided a curated list of links to help members better understand the complexities and impacts around digital assets.
Read a synopsis of the Executive Order below the links.
Additional Information and Resources
- White House Factsheet: Digital Assets Executive Order
- U.S. Department of Treasury: Statement by Secretary of the Treasury Janet L. Yellen on President Biden’s Executive Order on Digital Assets
Under the executive order, Treasury will partner with interagency colleagues to produce a report on the future of money and payment systems. [Treasury] will also convene the Financial Stability Oversight Council to evaluate the potential financial stability risks of digital assets and assess whether appropriate safeguards are in place. And, because the questions raised by digital assets often have important cross-border dimensions, [Treasury] will work with our international partners to promote robust standards and a level playing field. - From CoinDesk: Binance Eyes Non-Crypto Acquisitions to Enlarge Total Market: Report
“The strategy is about making the crypto industry bigger,” CEO Changpeng Zhao
Learn About Digital Assets
- World Council of Credit Unions Webinar: Step into the Future – “The Bitcoin Dilemma” Tuesday, March 15th at 6:00 pm CT
- Forbes Digital Assets & Web3 Summit: March 16, 2022, 2 – 4 p.m. ET / 11 a.m. – 1 p.m. PT – Virtual Event
- McKayResearch Report: Digital Assets & Blockchain: The Top Trends to watch in 2022 and Beyond
Identifies and critically reviews seven of the biggest trends in the digital and blockchain space, and charts how they will continue to shape the evolution of the space in 2022 and beyond. The seven trends include: Macro Decoupling; Institutional Investment; Expansion of NFTs; The Metaverse; Blockchain Sustainability Initiatives; Blockchain in Industry 4.0; and DAOs
NASCUS Resources
- NASCUS Comment Letter: RFI to Digital Assets and Related Technologies; NCUA Docket 2021–0102
- NASCUS Summary: Letter to Credit Unions (21-CU-16) Relationships with Third Parties that Provide Services Related to Digital Assets
What is in the Executive Order on Digital Assets?
The administration is building a strategy for a “whole-of-government approach to addressing the risks and harnessing the potential benefits of digital assets and their underlying technology.”
“The rise in digital assets creates an opportunity to reinforce American leadership in the global financial system and at the technological frontier, but also has substantial implications for consumer protection, financial stability, national security, and climate risk. The United States must maintain technological leadership in this rapidly growing space, supporting innovation while mitigating the risks for 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.”
This Executive Order specifically calls for:
- The Department of the Treasury and other agency partners to assess and develop policy recommendations to address the implications of the growing digital asset sector and changes in financial markets for consumers, investors, businesses, and equitable economic growth. The Order also encourages regulators to ensure sufficient oversight and safeguard against any systemic financial risks posed by digital assets.
- The Financial Stability Oversight Council to identify and mitigate economy-wide (i.e., systemic) financial risks posed by digital assets and to develop appropriate policy recommendations to address any regulatory gaps.
- Directs coordinated actions across all relevant U.S. Government agencies to mitigate the illicit finance and national security risks posed by the illicit use of digital assets. It also directs agencies to work with our allies and partners to ensure international frameworks, capabilities, and partnerships are aligned and responsive to risks.
- The Department of Commerce to work across the U.S. Government in establishing a framework to drive U.S. competitiveness and leadership in, and leveraging of digital asset technologies.
- The Secretary of the Treasury, working with all relevant agencies, will produce a report on the future of money and payment systems, to include implications for economic growth, financial growth and inclusion, national security, and the extent to which technological innovation may influence that future.
- Directs the U.S. Government to take concrete steps to study and support technological advances in the responsible development, design, and implementation of digital asset systems while prioritizing privacy, security, combating illicit exploitation, and reducing negative climate impacts.
- Directs the U.S. Government to assess the technological infrastructure and capacity needs for a potential U.S. Central Bank Digital Currency (CBDC) in a manner that protects Americans’ interests. The Order also encourages the Federal Reserve to continue its research, development, and assessment efforts for a U.S. CBDC, including development of a plan for broader U.S. Government action in support of their work.