Biden Administration Orders Review of Digital Assets

On March 9, 2022, President Biden issued an executive order on the “responsible development of digital assets.” He directed a “whole government” review of cryptocurrency assets, including directing the Secretary of the Treasury to convene the Financial Stability Oversight Council (“FSOC”).

• In conjunction with other agencies, the FSOC will study the risks and impact of digital assets and explore the possibility of creating a Central Bank Digital Currency in the United States.
• The order directs the executive agencies to explore creating a digital version of the U.S. dollar that could be used to facilitate digital transactions while still being controlled by the U.S. Department of the Treasury.
• President Biden expressed concern about the impact of cryptocurrencies on the integrity of the financial system.

In this C&G client alert, Douglas J Pepe and Alexandra K Theobald review the details of President Biden’s executive order on the “responsible development of digital assets” and offer insight into what we can expect from the government in terms of future guidance and enforcement efforts.