Ensuring Responsible Innovation in Digital Assets Requires TEAMWORK | Foodman CPAs and Advisors

the Executive Decree signed by President Biden sets out a National Policy for Digital Assets around six key priorities: consumer and investor protection, financial stability, illicit finance, American leadership in the global financial system and economic competitiveness, financial inclusion and responsible innovation. An innovative approach to digital assets is a priority for the United States

The Ensuring Responsible Development of Digital Assets Executive Order signed on 3/9/22 recognizes how the rise of digital assets creates an opportunity to strengthen U.S. leadership in the global financial system and its implications for consumer protection, financial stability, national security and climate risk.

In sum, the executive order calls for a “holistic approach” involving all moving parts of the U.S. government as follows:

• The Department of the Treasury and other partner agencies will assess and develop policy recommendations to address the implications of the growth of the digital asset industry and changes in financial markets for consumers, investors, businesses, and equitable economic growth. .
• Regulators need to provide sufficient oversight and guard against any systemic financial risk posed by digital assets.
• Financial Stability Oversight Board to identify and mitigate economy-wide financial risks posed by digital assets and develop appropriate policy recommendations to address any regulatory gaps.
• S. Government agencies to mitigate the illicit finance and national security risks posed by the illicit use of digital assets through coordinated action.
• Agencies must work with U.S. allies and partners to ensure international frameworks, capabilities, and partnerships are aligned and responsive to risk.
• The Department of Commerce will work with the entire U.S. government to establish a framework to drive U.S. competitiveness and leadership and leverage digital asset technologies.
• The Secretary of the Treasury, in conjunction with all relevant agencies, will produce a report on the future of monetary and payment systems, which will include implications for economic growth, financial growth and inclusion, national security and measurement in which technological innovation can influence this. to come up.
• S. The government must take concrete steps to explore and support technological advances in the responsible development, design and implementation of digital asset systems while prioritizing privacy, security, anti- against illegal logging and the reduction of negative climate impacts.
• S. The government will assess the technology infrastructure and capacity needs of a potential US central bank digital currency (CBDC) in a manner that protects the interests of Americans.
• The Federal Reserve will continue its research, development, and evaluation efforts for a U.S. CBDC, including developing a broader U.S. government action plan in support of its work.

Although no federal agency has issued new regulations, the executive order is clear that all federal departments must coordinate and work together. Team work!