The Order requires the report to 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, and proposals for additional or adjusted regulation, and supervision as well as for new legislation. The second policy objective in the Order requires the Secretary of the Treasury to convene the Financial Stability Oversight Council (“FSOC”) to 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. Financial Stability and Mitigating Systemic Risks ![]() Commodity Futures Trading Commission (“CFTC”), the Consumer Finance Protection Bureau (“CFPB”), and other agencies as part of their work pursuant to the Order. Securities and Exchange Commission (“SEC”), the U.S. ![]() The authors believe consumer protection will be a focus of the U.S. Much of the Order focuses on efforts to protect consumers from the possible risks associated with the development of digital assets. 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. The Order acknowledges the rise of digital assets may present disparate financial risk to less informed market participants. The first policy objective in the Order recognizes the increased use of digital assets and digital asset trading platforms may increase the risks of crimes and other violations of the law, privacy and data breaches, unfair and abusive acts or practices, and other cyber incidents faced by consumers, investors, and businesses. The Biden administration identified six policy priorities in the Order, requiring the production of a number of reports on digital assets, blockchain technology, and CBDCs: Consumer and Investor Protection Will the involvement of the Federal Government help or hinder the development of digital assets. Who gets to decide what constitutes “responsible development of digital assets” and What constitutes “responsible development of digital assets” 4 The questions of concern to the industry are: 3 However, we fear the Order includes a process that will prove unnecessarily laborious and that will negatively impact the speed of innovation. ![]() The authors applaud the President for his commitment to the development of digital assets and blockchain. 1 The Order announces the intention of the United States to develop a comprehensive federal approach to harness the opportunities posed by digital assets, central bank digital currencies (“CBDCs”), 2 and to understand and mitigate against the corresponding risks. Please forgive some members of the FinTech community for remembering President Ronald Reagan’s comment: “The nine most terrifying words in the English language are: ‘I’m From the Federal Government and I’m Here to Help.’” President Biden recently signed an Executive Order on Ensuring Responsible Development of Digital Assets (the “Order”) that instructs various agencies of the Federal Government with respect to the development of digital assets. ![]() Public Services, Infrastructure, Transportation.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |