Digital Asset Development (E.O. 14067)

Summary

Creates a plan for the U.S. government to study and manage digital money, like cryptocurrencies, to protect people, the economy, and national security.

What problem does this solve?

The rapid growth of digital money has created new risks for people's savings, national security, and the environment without clear rules. This order directs government agencies to work together to study these risks, create new rules, and explore a U.S. digital dollar.

What does this order do?

Places highest urgency on researching a U.S. Central Bank Digital Currency (CBDC)

Directs the government to urgently research and develop plans for a potential U.S. CBDC, or 'digital dollar', to assess its benefits and risks for the country.

Requires reports on protecting consumers and investors

Orders the Secretary of the Treasury and other agencies to report on the risks digital assets pose to consumers, investors, and businesses, and to recommend new rules to protect them.

Directs a study of financial stability risks

Requires the Financial Stability Oversight Council to identify and report on how digital assets could threaten the stability of the entire U.S. financial system.

Creates an action plan to fight illegal use of digital assets

Mandates the creation of a coordinated government plan to stop the use of digital assets for crimes like money laundering, terrorism financing, and cybercrime.

Orders a report on the environmental impact of cryptocurrencies

Requires a study on how digital assets, especially crypto mining, affect climate change and energy use, and whether the technology can be used to help the environment.

Establishes a framework for international cooperation

Directs agencies to work with other countries to create global standards for digital assets, ensuring a level playing field and protecting the international financial system.

Coordinates a whole-of-government approach

Creates a process for numerous federal departments and agencies to work together on a unified strategy for digital assets, from the Treasury to the EPA.

Who does this affect?

Cryptocurrency investors and users
Financial technology companies
Federal regulatory agencies

What is the real world impact?

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Establish U.S. leadership in digital finance

Aims to position the United States as a global leader in setting standards for digital assets, ensuring the U.S. dollar remains central to the world economy and promoting American values in financial technology.

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Protect consumers and the financial system

Addresses the growing risks from unregulated digital assets, such as fraud, market failures, and use in criminal activities, by creating a coordinated government plan to develop safeguards.

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Lay the groundwork for a U.S. digital dollar

Initiates urgent research into a U.S. Central Bank Digital Currency (CBDC), potentially creating a government-controlled digital currency to compete with private cryptocurrencies and foreign CBDCs.

When does this start?

This order sets multiple deadlines for government agencies to produce reports and action plans over the next year.

Report on the future of money and payment systems

Within 180 days (by September 5, 2022), the Treasury must submit a report on how digital assets will change money and payments.

Report on consumer protection

Within 180 days (by September 5, 2022), the Treasury must report on the risks to consumers and businesses and recommend protections.

Report on environmental impacts

Within 180 days (by September 5, 2022), the Office of Science and Technology Policy must report on the energy and climate effects of digital assets.

Report on financial stability risks

Within 210 days (by October 5, 2022), the Financial Stability Oversight Council must report on risks digital assets pose to the financial system.

Action plan on illicit finance

Within 120 days of the National Strategy for Combating Terrorist and Other Illicit Financing, relevant agencies must develop a plan to fight crime involving digital assets.