Ensuring Responsible Development of Digital Assets
| Citation | 87 FR 14143 |
| Record Number | 2022-05471 |
| Published date | 14 March 2022 |
| Section | Presidential Documents |
| Court | Executive Office Of The President |
Federal Register, Volume 87 Issue 49 (Monday, March 14, 2022)
[Federal Register Volume 87, Number 49 (Monday, March 14, 2022)]
[Presidential Documents]
[Pages 14143-14152]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-05471] Presidential Documents
Federal Register / Vol. 87, No. 49 / Monday, March 14, 2022 /
Presidential Documents
___________________________________________________________________
Title 3--
The President
[[Page 14143]]
Executive Order 14067 of March 9, 2022
Ensuring Responsible Development of Digital
Assets
By the authority vested in me as President by the
Constitution and the laws of the United States of
America, it is hereby ordered as follows:
Section 1. Policy. Advances in digital and distributed
ledger technology for financial services have led to
dramatic growth in markets for digital assets, with
profound implications for the protection of consumers,
investors, and businesses, including data privacy and
security; financial stability and systemic risk; crime;
national security; the ability to exercise human
rights; financial inclusion and equity; and energy
demand and climate change. In November 2021, non-state
issued digital assets reached a combined market
capitalization of $3 trillion, up from approximately
$14 billion in early November 2016. Monetary
authorities globally are also exploring, and in some
cases introducing, central bank digital currencies
(CBDCs).
While many activities involving digital assets are
within the scope of existing domestic laws and
regulations, an area where the United States has been a
global leader, growing development and adoption of
digital assets and related innovations, as well as
inconsistent controls to defend against certain key
risks, necessitate an evolution and alignment of the
United States Government approach to digital assets.
The United States has an interest in responsible
financial innovation, expanding access to safe and
affordable financial services, and reducing the cost of
domestic and cross-border funds transfers and payments,
including through the continued modernization of public
payment systems. We must take strong steps to reduce
the risks that digital assets could pose to consumers,
investors, and business protections; financial
stability and financial system integrity; combating and
preventing crime and illicit finance; national
security; the ability to exercise human rights;
financial inclusion and equity; and climate change and
pollution.
Sec. 2. Objectives. The principal policy objectives of
the United States with respect to digital assets are as
follows:
(a) We must protect consumers, investors, and
businesses in the United States. The unique and varied
features of digital assets can pose significant
financial risks to consumers, investors, and businesses
if appropriate protections are not in place. In the
absence of sufficient oversight and standards, firms
providing digital asset services may provide inadequate
protections for sensitive financial data, custodial and
other arrangements relating to customer assets and
funds, or disclosures of risks associated with
investment. Cybersecurity and market failures at major
digital asset exchanges and trading platforms have
resulted in billions of dollars in losses. The United
States should ensure that safeguards are in place and
promote the responsible development of digital assets
to protect consumers, investors, and businesses;
maintain privacy; and shield against arbitrary or
unlawful surveillance, which can contribute to human
rights abuses.
(b) We must protect United States and global
financial stability and mitigate systemic risk. Some
digital asset trading platforms and service providers
have grown rapidly in size and complexity and may not
be subject to or in compliance with appropriate
regulations or supervision. Digital asset issuers,
exchanges and trading platforms, and intermediaries
whose activities may increase risks to financial
stability, should, as appropriate, be subject to and in
compliance with regulatory and supervisory standards
that govern traditional market infrastructures and
financial firms, in line with the general
[[Page 14144]]
principle of ``same business, same risks, same rules.''
The new and unique uses and functions that digital
assets can facilitate may create additional economic
and financial risks requiring an evolution to a
regulatory approach that adequately addresses those
risks.
(c) We must mitigate the illicit finance and
national security risks posed by misuse of digital
assets. Digital assets may pose significant illicit
finance risks, including money laundering, cybercrime
and ransomware, narcotics and human trafficking, and
terrorism and proliferation financing. Digital assets
may also be used as a tool to circumvent United States
and foreign financial sanctions regimes and other tools
and authorities. Further, while the United States has
been a leader in setting international standards for
the regulation and supervision of digital assets for
anti-money laundering and countering the financing of
terrorism (AML/CFT), poor or nonexistent implementation
of those standards in some jurisdictions abroad can
present significant illicit financing risks for the
United States and global financial systems. Illicit
actors, including the perpetrators of ransomware
incidents and other cybercrime, often launder and cash
out of their illicit proceeds using digital asset
service providers in jurisdictions that have not yet
effectively implemented the international standards set
by the inter-governmental Financial Action Task Force
(FATF). The continued availability of service providers
in jurisdictions where international AML/CFT standards
are not effectively implemented enables financial
activity without illicit finance controls. Growth in
decentralized financial ecosystems, peer-to-peer
payment activity, and obscured blockchain ledgers
without controls to mitigate illicit finance could also
present additional market and national security risks
in the future. The United States must ensure
appropriate controls and accountability for current and
future digital assets systems to promote high standards
for transparency, privacy, and security--including
through regulatory, governance, and technological
measures--that counter illicit activities and preserve
or enhance the efficacy of our national security tools.
When digital assets are abused or used in illicit ways,
or undermine national security, it is in the national
interest to take actions to mitigate these illicit
finance and national security risks through regulation,
oversight, law enforcement action, or use of other
United States Government authorities.
(d) We must reinforce United States leadership in
the global financial system and in technological and
economic competitiveness, including through the
responsible development of payment innovations and
digital assets. The United States has an interest in
ensuring that it remains at the forefront of
responsible development and design of digital assets
and the technology that underpins new forms of payments
and capital flows in the international financial
system, particularly in setting standards that promote:
democratic values; the rule of law; privacy; the
protection of consumers, investors, and businesses; and
interoperability with digital platforms, legacy
architecture, and international payment systems. The
United States derives significant economic and national
security benefits from the central role that the United
States dollar and United States financial institutions
and markets play in the global financial system.
Continued United States leadership in the global
financial system will sustain United States financial
power and promote United States economic interests.
(e) We must promote access to safe and affordable
financial services. Many Americans are underbanked and
the costs of cross-border money transfers and payments
are high. The United States has a strong interest in
promoting responsible innovation that expands equitable
access to financial services, particularly for those
Americans underserved by the traditional banking
system, including by making investments and domestic
and cross-border funds transfers and payments cheaper,
faster, and safer, and by promoting greater and more
cost-efficient access to financial products and
services. The United States also has an interest in
ensuring that the benefits of financial innovation are
enjoyed equitably by all Americans and that any
disparate impacts of financial innovation are
mitigated.
[[Page 14145]]
(f) We must support technological advances that
promote responsible development and use of digital
assets. The technological architecture of different
digital assets has substantial implications for
privacy, national security, the operational security
and resilience of financial systems, climate change,
the ability to exercise human rights, and other
national goals. The United States has an interest in
ensuring that digital asset technologies and the
digital payments ecosystem are developed, designed, and
implemented in a responsible manner that includes
privacy and security in their architecture, integrates
features and controls that defend against illicit
exploitation, and reduces negative climate impacts and
environmental pollution, as may result from some
cryptocurrency mining.
Sec. 3. Coordination. The Assistant to the President
for National Security Affairs (APNSA) and the Assistant
to the President for Economic Policy (APEP) shall
coordinate, through the interagency process described
in National Security Memorandum 2 of February 4, 2021
(Renewing the National Security Council System), the
executive branch actions necessary to implement this
order. The interagency process shall include, as
appropriate: the Secretary of State, the Secretary of
the Treasury, the Secretary of Defense, the Attorney
General, the Secretary of Commerce, the Secretary of
Labor, the Secretary of Energy, the Secretary of
Homeland Security, the Administrator of the
Environmental Protection Agency, the Director of the
Office of Management and Budget, the Director of
National Intelligence, the Director of the Domestic
Policy Council, the Chair of the Council of Economic
Advisers, the Director of the Office of Science and
Technology Policy, the Administrator of the Office of
Information and Regulatory Affairs, the Director of the
National Science Foundation, and the Administrator of
the United States Agency for International Development.
Representatives of other executive departments and
agencies (agencies) and other senior officials may be
invited to attend interagency meetings as appropriate,
including, with due respect for their regulatory
independence, representatives of the Board of Governors
of the Federal Reserve System, the Consumer Financial
Protection Bureau (CFPB), the Federal Trade Commission
(FTC), the Securities and Exchange Commission (SEC),
the Commodity Futures Trading Commission (CFTC), the
Federal Deposit Insurance Corporation, the Office of
the Comptroller of the Currency, and other Federal
regulatory agencies.
Sec. 4. Policy and Actions Related to United States
Central Bank Digital Currencies. (a) The policy of my
Administration on a United States CBDC is as follows:
(i) Sovereign money is at the core of a well-functioning financial system,
macroeconomic stabilization policies, and economic growth. My
Administration places the highest urgency on research and development
efforts into the potential design and deployment options of a United States
CBDC. These efforts should include assessments of possible benefits and
risks for consumers, investors, and businesses; financial stability and
systemic risk; payment systems; national security; the ability to exercise
human rights; financial inclusion and equity; and the actions required to
launch a United States CBDC if doing so is deemed to be in the national
interest.
(ii) My Administration sees merit in showcasing United States leadership
and participation in international fora related to CBDCs and in multi-
country conversations and pilot projects involving CBDCs. Any future dollar
payment system should be designed in a way that is consistent with United
States priorities (as outlined in section 4(a)(i) of this order) and
democratic values, including privacy protections, and that ensures the
global financial system has appropriate transparency, connectivity, and
platform and architecture interoperability or transferability, as
appropriate.
(iii) A United States CBDC may have the potential to support efficient and
low-cost transactions, particularly for cross-border funds transfers and
payments, and to foster greater access to the financial system, with fewer
of the risks posed by private sector-administered digital assets. A United
States CBDC that is interoperable with CBDCs issued by other monetary
[[Page 14146]]
authorities could facilitate faster and lower-cost cross-border payments
and potentially boost economic growth, support the continued centrality of
the United States within the international financial system, and help to
protect the unique role that the dollar plays in global finance. There are
also, however, potential risks and downsides to consider. We should
prioritize timely assessments of potential benefits and risks under various
designs to ensure that the United States remains a leader in the
international financial system.
(b) Within 180 days of the date of this order, the
Secretary of the Treasury, in consultation with the
Secretary of State, the Attorney General, the Secretary
of Commerce, the Secretary of Homeland Security, the
Director of the Office of Management and Budget, the
Director of National Intelligence, and the heads of
other relevant agencies, shall submit to the President
a report on the future of money and payment systems,
including the conditions that drive broad adoption of
digital assets; the extent to which technological
innovation may influence these outcomes; and the
implications for the United States financial system,
the modernization of and changes to payment systems,
economic growth, financial inclusion, and national
security. This report shall be coordinated through the
interagency process described in section 3 of this
order. Based on the potential United States CBDC design
options, this report shall include an analysis of:
(i) the potential implications of a United States CBDC, based on the
possible design choices, for national interests, including implications for
economic growth and stability;
(ii) the potential implications a United States CBDC might have on
financial inclusion;
(iii) the potential relationship between a CBDC and private sector-
administered digital assets;
(iv) the future of sovereign and privately produced money globally and
implications for our financial system and democracy;
(v) the extent to which foreign CBDCs could displace existing currencies
and alter the payment system in ways that could undermine United States
financial centrality;
(vi) the potential implications for national security and financial crime,
including an analysis of illicit financing risks, sanctions risks, other
law enforcement and national security interests, and implications for human
rights; and
(vii) an assessment of the effects that the growth of foreign CBDCs may
have on United States interests generally.
(c) The Chairman of the Board of Governors of the
Federal Reserve System (Chairman of the Federal
Reserve) is encouraged to continue to research and
report on the extent to which CBDCs could improve the
efficiency and reduce the costs of existing and future
payments systems, to continue to assess the optimal
form of a United States CBDC, and to develop a
strategic plan for Federal Reserve and broader United
States Government action, as appropriate, that
evaluates the necessary steps and requirements for the
potential implementation and launch of a United States
CBDC. The Chairman of the Federal Reserve is also
encouraged to evaluate the extent to which a United
States CBDC, based on the potential design options,
could enhance or impede the ability of monetary policy
to function effectively as a critical macroeconomic
stabilization tool.
(d) The Attorney General, in consultation with the
Secretary of the Treasury and the Chairman of the
Federal Reserve, shall:
(i) within 180 days of the date of this order, provide to the President
through the APNSA and APEP an assessment of whether legislative changes
would be necessary to issue a United States CBDC, should it be deemed
appropriate and in the national interest; and
[[Page 14147]]
(ii) within 210 days of the date of this order, provide to the President
through the APNSA and the APEP a corresponding legislative proposal, based
on consideration of the report submitted by the Secretary of the Treasury
under section 4(b) of this order and any materials developed by the
Chairman of the Federal Reserve consistent with section 4(c) of this order.
Sec. 5. Measures to Protect Consumers, Investors, and
Businesses. (a) The increased use of digital assets and
digital asset exchanges and trading platforms may
increase the risks of crimes such as fraud and theft,
other statutory and regulatory violations, privacy and
data breaches, unfair and abusive acts or practices,
and other cyber incidents faced by consumers,
investors, and businesses. The rise in use of digital
assets, and differences across communities, may also
present disparate financial risk to less informed
market participants or exacerbate inequities. It is
critical to ensure that digital assets do not pose
undue risks to consumers, investors, or businesses, and
to put in place protections as a part of efforts to
expand access to safe and affordable financial
services.
(b) Consistent with the goals stated in section
5(a) of this order:
(i) Within 180 days of the date of this order, the Secretary of the
Treasury, in consultation with the Secretary of Labor and the heads of
other relevant agencies, including, as appropriate, the heads of
independent regulatory agencies such as the FTC, the SEC, the CFTC, Federal
banking agencies, and the CFPB, shall submit to the President a report, or
section of the report required by section 4 of this order, on the
implications of developments and adoption of digital assets and changes in
financial market and payment system infrastructures for United States
consumers, investors, businesses, and for equitable economic growth. One
section of the report shall address the conditions that would drive mass
adoption of different types of digital assets and the risks and
opportunities such growth might present to United States consumers,
investors, and businesses, including a focus on how technological
innovation may impact these efforts and with an eye toward those most
vulnerable to disparate impacts. The report shall also include policy
recommendations, including potential regulatory and legislative actions, as
appropriate, to protect United States consumers, investors, and businesses,
and support expanding access to safe and affordable financial services. The
report shall be coordinated through the interagency process described in
section 3 of this order.
(ii) Within 180 days of the date of this order, the Director of the Office
of Science and Technology Policy and the Chief Technology Officer of the
United States, in consultation with the Secretary of the Treasury, the
Chairman of the Federal Reserve, and the heads of other relevant agencies,
shall submit to the President a technical evaluation of the technological
infrastructure, capacity, and expertise that would be necessary at relevant
agencies to facilitate and support the introduction of a CBDC system should
one be proposed. The evaluation should specifically address the technical
risks of the various designs, including with respect to emerging and future
technological developments, such as quantum computing. The evaluation
should also include any reflections or recommendations on how the inclusion
of digital assets in Federal processes may affect the work of the United
States Government and the provision of Government services, including risks
and benefits to cybersecurity, customer experience, and social-safety-net
programs. The evaluation shall be coordinated through the interagency
process described in section 3 of this order.
(iii) Within 180 days of the date of this order, the Attorney General, in
consultation with the Secretary of the Treasury and the Secretary of
Homeland Security, shall submit to the President a report on the role of
law enforcement agencies in detecting, investigating, and prosecuting
criminal activity related to digital assets. The report shall include any
recommendations on regulatory or legislative actions, as appropriate.
[[Page 14148]]
(iv) The Attorney General, the Chair of the FTC, and the Director of the
CFPB are each encouraged to consider what, if any, effects the growth of
digital assets could have on competition policy.
(v) The Chair of the FTC and the Director of the CFPB are each encouraged
to consider the extent to which privacy or consumer protection measures
within their respective jurisdictions may be used to protect users of
digital assets and whether additional measures may be needed.
(vi) The Chair of the SEC, the Chairman of the CFTC, the Chairman of the
Federal Reserve, the Chairperson of the Board of Directors of the Federal
Deposit Insurance Corporation, and the Comptroller of the Currency are each
encouraged to consider the extent to which investor and market protection
measures within their respective jurisdictions may be used to address the
risks of digital assets and whether additional measures may be needed.
(vii) Within 180 days of the date of this order, the Director of the Office
of Science and Technology Policy, in consultation with the Secretary of the
Treasury, the Secretary of Energy, the Administrator of the Environmental
Protection Agency, the Chair of the Council of Economic Advisers, the
Assistant to the President and National Climate Advisor, and the heads of
other relevant agencies, shall submit a report to the President on the
connections between distributed ledger technology and short-, medium-, and
long-term economic and energy transitions; the potential for these
technologies to impede or advance efforts to tackle climate change at home
and abroad; and the impacts these technologies have on the environment.
This report shall be coordinated through the interagency process described
in section 3 of this order. The report should also address the effect of
cryptocurrencies' consensus mechanisms on energy usage, including research
into potential mitigating measures and alternative mechanisms of consensus
and the design tradeoffs those may entail. The report should specifically
address:
(A) potential uses of blockchain that could support monitoring or
mitigating technologies to climate impacts, such as exchanging of
liabilities for greenhouse gas emissions, water, and other natural or
environmental assets; and
(B) implications for energy policy, including as it relates to grid
management and reliability, energy efficiency incentives and standards, and
sources of energy supply.
(viii) Within 1 year of submission of the report described in section
5(b)(vii) of this order, the Director of the Office of Science and
Technology Policy, in consultation with the Secretary of the Treasury, the
Secretary of Energy, the Administrator of the Environmental Protection
Agency, the Chair of the Council of Economic Advisers, and the heads of
other relevant agencies, shall update the report described in section
5(b)(vii) of this order, including to address any knowledge gaps identified
in such report.
Sec. 6. Actions to Promote Financial Stability,
Mitigate Systemic Risk, and Strengthen Market
Integrity. (a) Financial regulators--including the SEC,
the CFTC, and the CFPB and Federal banking agencies--
play critical roles in establishing and overseeing
protections across the financial system that safeguard
its integrity and promote its stability. Since 2017,
the Secretary of the Treasury has convened the
Financial Stability Oversight Council (FSOC) to assess
the financial stability risks and regulatory gaps posed
by the ongoing adoption of digital assets. The United
States must assess and take steps to address risks that
digital assets pose to financial stability and
financial market integrity.
(b) Within 210 days of the date of this order, the
Secretary of the Treasury should convene the FSOC and
produce a report outlining the specific financial
stability risks and regulatory gaps posed by various
types of digital assets and providing recommendations
to address such risks. As the Secretary
[[Page 14149]]
of the Treasury and the FSOC deem appropriate, the
report should consider the particular features of
various types of digital assets and include
recommendations that address the identified financial
stability risks posed by these digital assets,
including any proposals for additional or adjusted
regulation and supervision as well as for new
legislation. The report should take account of the
prior analyses and assessments of the FSOC, agencies,
and the President's Working Group on Financial Markets,
including the ongoing work of the Federal banking
agencies, as appropriate.
Sec. 7. Actions to Limit Illicit Finance and Associated
National Security Risks. (a) Digital assets have
facilitated sophisticated cybercrime-related financial
networks and activity, including through ransomware
activity. The growing use of digital assets in
financial activity heightens risks of crimes such as
money laundering, terrorist and proliferation
financing, fraud and theft schemes, and corruption.
These illicit activities highlight the need for ongoing
scrutiny of the use of digital assets, the extent to
which technological innovation may impact such
activities, and exploration of opportunities to
mitigate these risks through regulation, supervision,
public-private engagement, oversight, and law
enforcement.
(b) Within 90 days of submission to the Congress of
the National Strategy for Combating Terrorist and Other
Illicit Financing, the Secretary of the Treasury, the
Secretary of State, the Attorney General, the Secretary
of Commerce, the Secretary of Homeland Security, the
Director of the Office of Management and Budget, the
Director of National Intelligence, and the heads of
other relevant agencies may each submit to the
President supplemental annexes, which may be classified
or unclassified, to the Strategy offering additional
views on illicit finance risks posed by digital assets,
including cryptocurrencies, stablecoins, CBDCs, and
trends in the use of digital assets by illicit actors.
(c) Within 120 days of submission to the Congress
of the National Strategy for Combating Terrorist and
Other Illicit Financing, the Secretary of the Treasury,
in consultation with the Secretary of State, the
Attorney General, the Secretary of Commerce, the
Secretary of Homeland Security, the Director of the
Office of Management and Budget, the Director of
National Intelligence, and the heads of other relevant
agencies shall develop a coordinated action plan based
on the Strategy's conclusions for mitigating the
digital-asset-related illicit finance and national
security risks addressed in the updated strategy. This
action plan shall be coordinated through the
interagency process described in section 3 of this
order. The action plan shall address the role of law
enforcement and measures to increase financial services
providers' compliance with AML/CFT obligations related
to digital asset activities.
(d) Within 120 days following completion of all of
the following reports--the National Money Laundering
Risk Assessment; the National Terrorist Financing Risk
Assessment; the National Proliferation Financing Risk
Assessment; and the updated National Strategy for
Combating Terrorist and Other Illicit Financing--the
Secretary of the Treasury shall notify the relevant
agencies through the interagency process described in
section 3 of this order on any pending, proposed, or
prospective rulemakings to address digital asset
illicit finance risks. The Secretary of the Treasury
shall consult with and consider the perspectives of
relevant agencies in evaluating opportunities to
mitigate such risks through regulation.
Sec. 8. Policy and Actions Related to Fostering
International Cooperation and United States
Competitiveness. (a) The policy of my Administration on
fostering international cooperation and United States
competitiveness with respect to digital assets and
financial innovation is as follows:
(i) Technology-driven financial innovation is frequently cross-border and
therefore requires international cooperation among public authorities. This
cooperation is critical to maintaining high regulatory standards and a
level playing field. Uneven regulation, supervision, and compliance across
jurisdictions creates opportunities for arbitrage and raises risks to
financial
[[Page 14150]]
stability and the protection of consumers, investors, businesses, and
markets. Inadequate AML/CFT regulation, supervision, and enforcement by
other countries challenges the ability of the United States to investigate
illicit digital asset transaction flows that frequently jump overseas, as
is often the case in ransomware payments and other cybercrime-related money
laundering. There must also be cooperation to reduce inefficiencies in
international funds transfer and payment systems.
(ii) The United States Government has been active in international fora and
through bilateral partnerships on many of these issues and has a robust
agenda to continue this work in the coming years. While the United States
held the position of President of the FATF, the United States led the group
in developing and adopting the first international standards on digital
assets. The United States must continue to work with international partners
on standards for the development and appropriate interoperability of
digital payment architectures and CBDCs to reduce payment inefficiencies
and ensure that any new funds transfer and payment systems are consistent
with United States values and legal requirements.
(iii) While the United States held the position of President of the 2020
G7, the United States established the G7 Digital Payments Experts Group to
discuss CBDCs, stablecoins, and other digital payment issues. The G7 report
outlining a set of policy principles for CBDCs is an important contribution
to establishing guidelines for jurisdictions for the exploration and
potential development of CBDCs. While a CBDC would be issued by a country's
central bank, the supporting infrastructure could involve both public and
private participants. The G7 report highlighted that any CBDC should be
grounded in the G7's long-standing public commitments to transparency, the
rule of law, and sound economic governance, as well as the promotion of
competition and innovation.
(iv) The United States continues to support the G20 roadmap for addressing
challenges and frictions with cross-border funds transfers and payments for
which work is underway, including work on improvements to existing systems
for cross-border funds transfers and payments, the international dimensions
of CBDC designs, and the potential of well-regulated stablecoin
arrangements. The international Financial Stability Board (FSB), together
with standard-setting bodies, is leading work on issues related to
stablecoins, cross-border funds transfers and payments, and other
international dimensions of digital assets and payments, while FATF
continues its leadership in setting AML/CFT standards for digital assets.
Such international work should continue to address the full spectrum of
issues and challenges raised by digital assets, including financial
stability, consumer, investor, and business risks, and money laundering,
terrorist financing, proliferation financing, sanctions evasion, and other
illicit activities.
(v) My Administration will elevate the importance of these topics and
expand engagement with our critical international partners, including
through fora such as the G7, G20, FATF, and FSB. My Administration will
support the ongoing international work and, where appropriate, push for
additional work to drive development and implementation of holistic
standards, cooperation and coordination, and information sharing. With
respect to digital assets, my Administration will seek to ensure that our
core democratic values are respected; consumers, investors, and businesses
are protected; appropriate global financial system connectivity and
platform and architecture interoperability are preserved; and the safety
and soundness of the global financial system and international monetary
system are maintained.
(b) In furtherance of the policy stated in section
8(a) of this order:
(i) Within 120 days of the date of this order, the Secretary of the
Treasury, in consultation with the Secretary of State, the Secretary of
Commerce, the Administrator of the United States Agency for International
Development, and the heads of other relevant agencies, shall establish a
framework for interagency international engagement with foreign
counterparts and
[[Page 14151]]
in international fora to, as appropriate, adapt, update, and enhance
adoption of global principles and standards for how digital assets are used
and transacted, and to promote development of digital asset and CBDC
technologies consistent with our values and legal requirements. This
framework shall be coordinated through the interagency process described in
section 3 of this order. This framework shall include specific and
prioritized lines of effort and coordinated messaging; interagency
engagement and activities with foreign partners, such as foreign assistance
and capacity-building efforts and coordination of global compliance; and
whole-of-government efforts to promote international principles, standards,
and best practices. This framework should reflect ongoing leadership by the
Secretary of the Treasury and financial regulators in relevant
international financial standards bodies, and should elevate United States
engagement on digital assets issues in technical standards bodies and other
international fora to promote development of digital asset and CBDC
technologies consistent with our values.
(ii) Within 1 year of the date of the establishment of the framework
required by section 8(b)(i) of this order, the Secretary of the Treasury,
in consultation with the Secretary of State, the Secretary of Commerce, the
Director of the Office of Management and Budget, the Administrator of the
United States Agency for International Development, and the heads of other
relevant agencies as appropriate, shall submit a report to the President on
priority actions taken under the framework and its effectiveness. This
report shall be coordinated through the interagency process described in
section 3 of this order.
(iii) Within 180 days of the date of this order, the Secretary of Commerce,
in consultation with the Secretary of State, the Secretary of the Treasury,
and the heads of other relevant agencies, shall establish a framework for
enhancing United States economic competitiveness in, and leveraging of,
digital asset technologies. This framework shall be coordinated through the
interagency process described in section 3 of this order.
(iv) Within 90 days of the date of this order, the Attorney General, in
consultation with the Secretary of State, the Secretary of the Treasury,
and the Secretary of Homeland Security, shall submit a report to the
President on how to strengthen international law enforcement cooperation
for detecting, investigating, and prosecuting criminal activity related to
digital assets.
Sec. 9. Definitions. For the purposes of this order:
(a) The term ``blockchain'' refers to distributed
ledger technologies where data is shared across a
network that creates a digital ledger of verified
transactions or information among network participants
and the data are typically linked using cryptography to
maintain the integrity of the ledger and execute other
functions, including transfer of ownership or value.
(b) The term ``central bank digital currency'' or
``CBDC'' refers to a form of digital money or monetary
value, denominated in the national unit of account,
that is a direct liability of the central bank.
(c) The term ``cryptocurrencies'' refers to a
digital asset, which may be a medium of exchange, for
which generation or ownership records are supported
through a distributed ledger technology that relies on
cryptography, such as a blockchain.
(d) The term ``digital assets'' refers to all
CBDCs, regardless of the technology used, and to other
representations of value, financial assets and
instruments, or claims that are used to make payments
or investments, or to transmit or exchange funds or the
equivalent thereof, that are issued or represented in
digital form through the use of distributed ledger
technology. For example, digital assets include
cryptocurrencies, stablecoins, and CBDCs. Regardless of
the label used, a digital asset may be, among other
things, a security, a commodity, a derivative, or other
financial product.
[[Page 14152]]
Digital assets may be exchanged across digital asset
trading platforms, including centralized and
decentralized finance platforms, or through peer-to-
peer technologies.
(e) The term ``stablecoins'' refers to a category
of cryptocurrencies with mechanisms that are aimed at
maintaining a stable value, such as by pegging the
value of the coin to a specific currency, asset, or
pool of assets or by algorithmically controlling supply
in response to changes in demand in order to stabilize
value.
Sec. 10. General Provisions. (a) Nothing in this order
shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or
the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget
relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with
applicable law and subject to the availability of
appropriations.
(c) This order is not intended to, and does not,
create any right or benefit, substantive or procedural,
enforceable at law or in equity by any party against
the United States, its departments, agencies, or
entities, its officers, employees, or agents, or any
other person.
(Presidential Sig.)
THE WHITE HOUSE,
March 9, 2022.
[FR Doc. 2022-05471
Filed 3-11-22; 8:45 am]
Billing code 3395-F2-P
