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

Federal agencies to explore financial and environmental concerns and inform regulatory action

Wall Street Journal 2022-03-09 Andrew Duehren

Context & Ripple Effects

The order formalizes a government-wide approach that had been under consideration since October and was expected to direct agencies to study crypto and a CBDC weeks earlier. It moves digital assets from pre-decision White House planning into coordinated agency review.

The coverage frames the review around sanctions evasion, financial and environmental concerns, while putting a digital dollar on the same policy track. A later Treasury position in the related coverage makes issuance conditional on a finding of national interest.

First-order effects

Federal agencies must assess digital-asset risks and feed those findings into possible regulatory action, making the Biden administration the coordinator of the response.
Digital-asset policy now explicitly includes consideration of a US digital dollar alongside scrutiny of cryptocurrency-related risks.

Second-order effects

Crypto firms and users face regulation shaped by agency assessments of sanctions, financial, and environmental concerns rather than a single isolated policy question.
Treasury's eventual advice on a digital dollar will depend on whether the administration and Congress judge it to be in the national interest, linking the review to a later political decision.

Third-order effects

If the coordinated-review model persists, US digital-asset policy will be organized around cross-agency risk management and legitimacy rather than treating crypto solely as a market issue.
A digital dollar becomes a policy option evaluated alongside controls on private digital assets, reinforcing the government-wide approach to cryptocurrencies outlined in earlier coverage.

The trend: US digital-asset policy is shifting toward coordinated federal oversight that couples crypto-risk assessment with evaluation of a central-bank digital dollar.

Discussion

@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.
@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)
@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…
@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
@sbf_ftx @sbf_ftx on x
A constructive EO to discuss customer protection and economic competitiveness in digital assets. https://twitter.com/...
@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
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/...
@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…
@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/...
@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/...
@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/...
@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.
@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
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.
@crypto_ed_nl @crypto_ed_nl on x
“The future of money” https://twitter.com/...
@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/ ...
@mdudas Mike Daodas on x
i am delighted to call myself a responsible innovator https://www.theblockcrypto.com/ ...

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