U.S. Publishes First-Ever Framework For Development of Digital Assets

#bidenadministration #digitalassets #financialservices #sec #whitehouse digital asset news executive order Sep 22, 2022

Following U.S. President Joe Biden’s signed executive order the White House releases a new report titled “first-ever comprehensive framework for responsible development of digital assets.” It outlines recommendations to protect consumers, investors, businesses, financial stability, national security and the environment. 

The President's Executive Order (EO) on March 9 outlined the first whole-of-government approach to addressing the risks and harnessing the potential benefits of digital assets and underlying technology. Government agencies over the last six months have worked together to develop frameworks and policy recommendations that advance the six key priorities identified in the EO: consumer and investor protection; promoting financial stability; countering illicit finance; U.S. leadership in the global financial system and economic competitiveness; financial inclusion; and responsible innovation.

According to the White House fact sheet published on September 16, 2022, the nine reports submitted to the President to date, consistent with the executive order deadlines, reflect the input and expertise of diverse stakeholders across government, industry, academia, and civil society. The reports are articulating a “clear framework for responsible digital asset development and pave the way for further action at home and abroad.” 

The fact sheet lists the following steps that the administration will be taking additionally: 

  • Encourage regulators like SEC and CFTC to aggressively pursue investigations and enforcement actions against unlawful practices in the digital assets space.
  • Encourage CFPB and FTC, as appropriate, to redouble their efforts to monitor consumer complaints and to enforce against unfair, deceptive, or abusive practices. 
  • Encourage agencies to issue guidance and rules to address current and emergent risks in the digital asset ecosystem. Regulatory and law enforcement agencies are also urged to collaborate to address acute digital assets risks facing consumers, investors, and businesses.
  • FLEC will lead public-awareness efforts to help consumers understand the risks involved with digital assets, identify common fraudulent practices, and learn how to report misconduct.

The Administration has plans to promote safe and affordable financial services, regulation to address digital assets’ stability risks, foster responsible digital asset innovation, reinforce U.S.financial leadership and uphold U.S. values in global digital asset markets, fight elicit use of digital assets and more. 

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