The Biden administration will support responsible innovation around digital assets
The executive order will also look to establish consumer and investor protection measures
International partners will be involved in defining standards for digital assets
The office of the United States Secretary of the Treasury Janet Yellen yesterday released a statement, dated March 9 (today), that indicated that President Biden’s executive order would support responsible innovation via a coordinated approach to establishing digital asset policy.
Strange, and maybe accidental
Meant to be a response to the yet-unreleased directive by the White House, the statement by the Treasury secretary has since been deleted but was captured by a web archive.
Yellen explained that this approach benefits the nation and the citizens at large while also dealing with the inherent risks of illegal activity in finance and preventing dangers that may affect the wider economy.
“This approach will support responsible innovation that could result in substantial benefits for the nation, consumers, and businesses. It will also address risks related to illicit finance, protecting consumers and investors, and preventing threats to the financial system and broader economy,” Yellen wrote.
The report is not necessarily bearish based on the response
The Treasury secretary also indicated that President Biden is leaning towards establishing collaborative efforts within inter-governmental agencies.
In outlining the steps that her Department will take towards understanding digital assets and the necessary regulatory ropes around them, the long-standing economist said that the Treasury will work with other governmental agencies to coin a report on “the future of money and payment systems.“
Further, via collaborative work with the Financial Stability Oversight Council, there are plans to explore the impact of digital assets on financial stability and whether the necessary checks for said risks are in place.
In addition, as the Treasury Department believes digital assets matters require a “cross-border dimension,” international partners will also be involved in ensuring consistent standards around digital assets to ensure a level playing field is defined.
The end goal of the planned action by the Department is to work with stakeholders to achieve an enhanced financial system while preventing risks and illegal financial activity.
“As we take on this important work, we’ll be guided by consumer and investor protection groups, market participants, and other leading experts. Treasury will work to promote a fairer, more inclusive, and more efficient financial system, while building on our ongoing work to counter illicit finance, and prevent risks to financial stability and national security.”
The Department will look to build on the works it had initiated before, including the consultative action on stable coins it conducted with the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and The President’s Working Group on Financial Markets.