Biden signed an executive order directing federal agencies to study the risks posed by digital assets, such as evading sanctions, and consider a digital dollar

Wall Street Journal 2022-03-10

Context & Ripple Effects

The order formalizes a policy path that had moved from early consideration of a government-wide crypto approach to reports that agencies would be asked to develop a digital-assets strategy. It puts federal coordination, rather than a single agency action, at the center of the administration’s response.

The digital-dollar review is consequential because the later coverage places Treasury in the role of advising whether issuance serves the national interest, making this order an input to a broader federal decision rather than a commitment to launch one.

First-order effects

Federal agencies must assess digital assets through the stated lenses of sanctions evasion and other risks, while also examining a digital dollar.
Biden’s administration moves crypto policy from preliminary planning into a coordinated interagency review.

Second-order effects

Treasury gains a central role in translating the review into advice on a digital dollar, as reflected in its later national-interest recommendation framework.
Crypto businesses and users face a federal policy process focused on risk assessment, increasing the importance of how agencies characterize digital assets’ sanctions-related exposure.

Third-order effects

If this coordinated-review model persists, US digital-asset policy will be shaped by national-security and monetary-policy institutions alongside market-facing regulators.
A digital dollar becomes a policy option evaluated against public-interest criteria, rather than an automatic consequence of federal interest in crypto.

The trend: US digital-asset policy is shifting from fragmented consideration toward coordinated executive-branch oversight that pairs crypto-risk review with evaluation of a sovereign digital currency.

Discussion

Vox Rebecca Heilweil on x
Why some crypto fans are praising Joe Biden
@garygensler Gary Gensler on x
Today, @POTUS signed an Executive Order on crypto-assets. I look forward to collaborating with colleagues across the government to achieve important public policy goals: protecting investors & consumers, guarding against illicit activity, & helping ensure financial stability.
@reptomemmer Tom Emmer on x
1) Decentralization is the Point: The EO doesn't mention decentralization once. The disintermediation of our economy will enable all Americans, regardless of circumstance, to decide their futures, not a bank or Big Tech or the government.
@jerallaire Jeremy Allaire on x
White House Exec Order and U.S. Government Strategy for Digital Assets — a thread with thoughts; TLDR = this is a watershed moment for crypto, digital assets, and Web 3, akin to the 1996/1997 whole of government wakeup to the commercial internet. (1/7)
@sbf_ftx @sbf_ftx on x
A constructive EO to discuss customer protection and economic competitiveness in digital assets. https://twitter.com/...
@senwarren Elizabeth Warren on x
I've been ringing the alarm bell on crypto, from consumer protection to the environment to national security—especially since Russian elites can use digital assets to undermine sanctions. @POTUS is right to spotlight crypto's risks and we need strong rules before it's too late.
@whitehouse @whitehouse on x
Today, @POTUS signed an Executive Order outlining a plan to address risks and harness potential benefits of digital assets, including cryptocurrency, helping America reinforce its leadership in the global financial system and the technological frontier. https://www.whitehouse.gov…
@cameron Cameron Winklevoss on x
1/ @potus's executive order on crypto is a watershed moment. It paves the way for thoughtful national crypto regulation that will allow builders to build onshore and ensure that the US remains a leader in crypto — creating greater independence, choice, and opportunity for all.
@jerrybrito Jerry Brito on x
Well, the EO is just further affirmation that when serious officials take a sober look at crypto, the reaction is not to light their hair on fire, but instead to recognize it as a innovation that the U.S. will want to foster and lead while mitigating obvious risks.
@jerrybrito Jerry Brito on x
OK, I read it. Here's my quick take on the executive order.
@jerallaire Jeremy Allaire on x
The U.S. seems to be taking on the reality that digital assets represent one of the most significant technologies and infrastructures for the 21st century; it's rewarding to see this from the WH after so many of us have been making the case for 9+ years. (2/7)
@tedcruz Ted Cruz on x
TERRIBLE idea. https://twitter.com/...
@briandeesenec Brian Deese on x
This E.O. is an important milestone. It establishes an all of government framework to secure leadership, safeguard consumers and the broader financial system, and ensure responsible innovation in digital assets. https://www.cnbc.com/...
@markwarner Mark Warner on x
This is an important EO from the Biden admin at a critical time - I look forward to working alongside the administration further as they continue to develop a clear federal strategy for crypto that prioritizes competition and economic security. https://www.cnbc.com/...
@johnlegere John Legere on x
It's important to have regulations - but I'm hoping these don't take some of the fun out of crypto. https://www.theverge.com/...
@reptomemmer Tom Emmer on x
3) Most fortunately, the EO doesn't ask the SEC to weigh in. SEC Chair Gensler has spent the past year intimidating crypto innovators and entrepreneurs with his unproductive regulation by public statement and enforcement action. His input is not critical.
@ashgoblue @ashgoblue on x
Today's EO definitely puts a stake in the ground on crypto like we haven't seen from the US govt. After years of “crypto is only for money laundering” or “crypto doesn't have any real use cases” this is a refreshing read. https://www.whitehouse.gov/...
@jerallaire Jeremy Allaire on x
We are at a turning point in geopolitical and geo-economic systems and history, and the U.S. now has the opportunity to lean into an open, internet-native economic infrastructure while others focus on closed, tightly-controlled and privacy-eroding alternatives. (4/7)
@atabarrok Alex Tabarrok on x
Biden has been good on war and good on crypto. Competence matters. https://twitter.com/...
@statedeptspox Ned Price on x
Like all new technologies, financial innovations and new forms of payments greatly benefit society, but they need the right guardrails to protect against abuse by bad actors. Today, the @WhiteHouse issued an Executive Order on digital assets: https://www.state.gov/...
@johnedeaton1 John E Deaton on x
Many people criticized @Ripple for choosing cross border payments as the company's focus and not smart contracts. Why choose the harder path of disrupting a half century SWIFT legacy banking system built on fees from friction? How receptive is a 🏦 on losing those immediate fees? …
@katiephang Katie S. Phang on x
“The order lays out a national policy for digital assets across six areas: consumer and investor protection; financial stability; illicit finance; U.S. leadership in the global financial system and economic competitiveness; financial inclusion; and responsible innovation.” https:…
@carnage4life @carnage4life on x
The legitimization of crypto as an industry with the same light government touch as the banking industry leaves the door open for bailouts if there's ever a significant bubble burst. The moral hazard that led to the housing crisis will pale in comparison https://www.wsj.com/...
@statedept @statedept on x
The U.S. is committed to ensuring responsible development of digital assets and the technology that underpins payments and capital flows in the international financial system. More on @WhiteHouse E.O. “Ensuring Responsible Development of Digital Assets.” https://www.whitehouse.go…
@saylor Michael Saylor on x
“The rise in digital assets creates an opportunity to reinforce American leadership in the global financial system and at the technological frontier” - @JoeBiden on #Bitcoin https://www.whitehouse.gov/...
@cameron Cameron Winklevoss on x
5/ There is more work to be done to ensure that crypto and web3 innovation flourish here in the US. The EO astutely asks various federal agencies to provide recommendations and research plans to best inform on an overarching national crypto strategy.
@cameron Cameron Winklevoss on x
11/ This is a critical time for crypto innovation and adoption. Thank you White House, members of Congress, and all those involved for leading the charge. Gemini looks forward to doing our part to ensure the continued and responsible growth of US crypto markets and innovation.
@cameron Cameron Winklevoss on x
2/ @Gemini gives thanks to the @WhiteHouse, @USTreasury, and all those involved in recognizing the importance of a coordinated and thoughtful national strategy on crypto. Creating a framework for responsible crypto innovation is foundational to the US being a leader in crypto.
@lopp Jameson Lopp on x
Bitcoin protects American ideals far more reliably than American authorities.
@alex @alex on x
China: Bans all crypto America: Crypto Sundays https://twitter.com/...
@b_fung Brian Fung on x
The text of Biden's executive order on cryptocurrency is out. A key part is his statement of administration policy toward a potential digital dollar, and directing : https://twitter.com/...
@fredwilson Fred Wilson on x
The President's Executive Order on Web3 is a landmark moment. Finally, we have the federal government focused on Web3 and organizing itself to engage constructively with the sector. This is long overdue: https://www.whitehouse.gov/...
@anildash @anildash on x
This was always the strategy, race to quickly have multi-billion-dollar publicly-traded companies in the sector, so that no strong regulation could be passed because it would be “anti-business”, without regard to impact on regular people. https://twitter.com/...
@ronconway Ron Conway on x
The White House Executive Order is a landmark moment for the web3 ecosystem: formal recognition by the U.S. Govt that web3 is the next generation of the internet and one of the most important technological breakthroughs of the 21st century. https://www.coindesk.com/...
@jwverret @jwverret on x
How this got watered down, was WH political affairs understands that many House Ds are running as pro-crypto. That is precisely how this happened. @twobitidiot has been urging import of single issue bipartisan and pro-crypto politics. Donate to @AarikaRhodes!!! https://twitter.co…
@ericliptonnyt Eric Lipton on x
A lot of important thoughts in this new Biden executive order relating to virtual currency, and both the financial risk and potential financial benefits it presents. But almost no real action here so far. Kicking the can down the road. https://www.whitehouse.gov/...
@kwerb Kevin Werbach on x
Today's White House Executive Order on digital assets is an important milestone. It marks the transition from reactive enforcement to proactive policy-making in the US. Long term, a hugely positive step for the maturation of the digital asset space. https://t.co/...
@twobitidiot @twobitidiot on x
It looks like the Biden Admin will get the executive order right. Study impact of crypto / Web3, figure out how to unify regulation of the exchanges, promote competitiveness, and evaluate the potential of a CBDC. A big win for Biden and pragmatic Dems. Loss for Warren.
@lightcrypto @lightcrypto on x
The executive order was constructive: absent new regulation, speaking positively about innovation in the space. A bogeyman for months, now gone. https://twitter.com/... https://twitter.com/...
@sbf_ftx @sbf_ftx on x
ok so one thing that confuses me— this was *always* going to be what the EO said; every sign pointed to it why did markets go down when it was formally announced that it would come out this week (it was already going to come out?), and why did they go up when it did come out?
@val5linx Michael on x
There's a copy of the fact sheet in this article! A statement from Treasury Secretary Janet Yelen on the new executive order seems to have gone up accidentally on the Treasury's website before being taken down, but not before its webarchive was captured. https://www.theblockcrypt…
@andrewyang Andrew Yang on x
A presidential executive order on cryptocurrencies would “support responsible innovation” as it coordinates U.S. policy across agencies https://www.coindesk.com/...
@cobie @cobie on x
Can't believe Biden's executive order requires every household in America to market buy 1 bitcoin within 60 days or face severe consequences
@mdudas Mike Daodas on x
👀"Digital assets can also provide opportunities for American innovation... Innovation is central to America's story and our economy, generating jobs and opps, creating and building new industries, and sustaining our global competitive edge and leadership." https://www.coindesk.co…
@mdudas Mike Daodas on x
Responsibly gaining https://twitter.com/... https://twitter.com/...
@carnage4life @carnage4life on x
Biden's executive order on crypto is out and the market is happy. It's now clear that the $1.75T is too big to face harsh scrutiny and will instead be treated like banking. A light touch and the worst scams banned in exchange for cooperation with government. Coinbase has won. htt…
@crypto_ed_nl @crypto_ed_nl on x
“The future of money” https://twitter.com/...
@teanataylor Teana Baker-Taylor on x
The long awaited Presidential Executive Order on #crypto is being released today. EO outlines a “whole of US govt approach” and a step toward putting in place coordinated and comprehensive regulatory policies for #DigitalAssets. EO Fact Sheet: https://www.whitehouse.gov/...
@cmsintern @cmsintern on x
From Biden's executive order on crypto: “U.S. competitiveness and leadership in, and leveraging of digital assets” 🚀🚀🚀 https://twitter.com/...
@thestalwart Joe Weisenthal on x
Bitcoin is surging. Fears go away about the Biden crypto EO https://www.bloomberg.com/...
@jeneps Jennifer Epstein on x
Biden order doesn't specifically address the potential use of crypto to evade sanctions but an official who briefed reporters said the admin is aggressively fighting the misuse of crypto. Official also said it doesn't see crypto as a viable workaround for Russia in particular.
@timccopeland Tim Copeland on x
👀 https://twitter.com/...
@jeneps Jennifer Epstein on x
The EO details six “priorities”: consumer and investor protection; financial stability; illicit finance; U.S. leadership in the global financial system and economic competitiveness; financial inclusion; and responsible innovation.
@jeneps Jennifer Epstein on x
NEW: White House lays out its executive order on digital assets, which President Biden will sign today. It directs several studies to be conducted by agencies in the next 60 to 180 days.
@fintechfrank Frank Chaparro on x
The Block has obtained a fact sheet outlining the key points of Biden's executive order on crypto, which is described as the “first ever, whole-of-government” approach to overseeing the sector in the US. https://www.theblockcrypto.com/ ...

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