Executive Order - Cryptocurrencies

On March 9, 2022, President Joe Biden signed an executive order (EO) for a sweeping review of the US government’s approach to cryptocurrencies.

The EO aims to ensure the nation’s leadership in the global financial system, contain risks to consumers and the financial system itself, and safeguard the efficacy of national security tools like sanctions and anti-money laundering frameworks.

According to a White House fact sheet, digital assets, including cryptocurrencies, have surpassed a $3 trillion market cap, up from $14 billion just five years prior. This explosive growth “creates an opportunity to reinforce American leadership in the global financial system and at the technological frontier, but also has substantial implications for consumer protection, financial stability, national security, and climate risk.” The EO calls for various government entities to coordinate with one another, submit reports on these and other related topics, and suggest next steps for regulatory and legislative action. The administration will work across agencies, with Congress, and with and allies and partners to establish policies that guard against risks, develop aligned international capabilities, and guide responsible innovation.

Although the EO does not require immediate actions, it reflects the administration’s path toward a coordinated and forward-looking approach to digital asset regulation. The EO also suggests that the White House believes existing agencies can regulate digital assets without creating a new government entity.