On March 9, 2022, President Biden signed an Executive Order on Ensuring Responsible Development of Digital Assets (“Executive Order”) to mobilize the federal government to develop a strategy for digital assets, intending to encourage innovation in a manner that mitigates the risks to consumers, investors, and businesses. The Executive Order mandates an interagency approach across several executive departments and federal agencies to conduct reports and analyses on key issues impacting digital assets, including consideration of U.S. Central Bank Digital Currencies (“CBDC”). The Executive Order identifies six primary policy objectives:
- protect U.S. consumers, investors, and businesses;
- protect U.S. and global financial stability and mitigate systemic risk;
- mitigate the illicit finance and national security risks posed by misuse of digital assets;
- reinforce U.S. leadership in the global financial system and in technological and economic competitiveness;
- promote access to safe and affordable financial services; and
- support technological advances that promote responsible development and use of digital assets.