Protect US consumers, investors, and businesses. The US Department of the Treasury and other agency partners are directed to assess and develop policy recommendations to address the growth of the digital asset sector and changes needed in financial markets for consumers, investors, businesses, and equitable economic growth in this area. Additionally, regulators are encouraged to provide oversight to limit financial risks posed by digital assets.

Protect US and global financial stability and mitigate systemic risk. The Financial Stability Oversight Council (FSOC) is encouraged to take on the task of identifying and mitigating systemic financial risks posed by digital assets and developing policies to address regulatory gaps. Without sufficient oversight and standards, firms providing digital asset services may not provide adequate protections for sensitive financial data, custodial and other arrangements relating to customer assets and funds, or disclosures of risks associated with investment (see Legal Update, FSOC Annual Review Identifies Primary Risks to US Financial System).

Mitigate the illicit finance and national security risks posed by the use of digital assets. The order directs all relevant government agencies to work domestically to mitigate the risks that digital assets will be used in illicit finance and to partner with international allies to ensure there are appropriate frameworks in place to prevent similar misuse. The US should continue to be a leader in setting international standards for the regulation and supervision of digital assets for anti‑money laundering (AML) and countering the financing of terrorism (CFT). Poor or nonexistent implementation of such standards could present significant illicit financing risks for the US and global financial systems. Illicit finance risks include 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 national and international sanctions regimes and other tools and authorities.

Promote US leadership in technology and economic competitiveness to reinforce US leadership in the global financial system. The Department of Commerce is directed to work across government agencies to develop a framework that will serve as a foundation as agencies prioritize digital assets in their policy, research, and development, as well as operational approaches to drive US competitiveness and dominance in the digital asset technologies arena. The US has an interest in maintaining its leadership in the development and design of digital assets and the technology that grounds new forms of payments and capital flows in the international financial system, particularly in setting standards that promote:

The US benefits economically and in the area of national security from the role that the US dollar and US financial institutions and markets play in the global financial system.

Promote equitable access to safe and affordable financial services. The US has interests in both ensuring that the benefits of financial innovation are shared equitably by all Americans and providing access to financial services. The order notes that many Americans are unbanked and spend substantial sums on cross-border money transfers and payments. By investing in responsible innovation, particularly that which would impact the underserved population, the US will promote equitable access to the financial system through making transactions cheaper, faster, and safer.

Support technological advances and ensure responsible development and use of digital assets. How the technology for different digital assets is built 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 order suggests that the architecture of digital assets should be developed in such a way that digital asset technologies and the digital payments ecosystem addresses privacy and security concerns, integrates features and controls that defend against illicit exploitation, and reduces negative climate impacts and environmental pollution, as may result from certain cryptocurrency mining activities.

The Treasury Secretary shall submit to the President a report, produced through an interagency process, on the future of money and payment systems.

The Treasury Secretary, in consultation with the Labor Secretary and the heads of other relevant agencies, including, as appropriate, the heads of independent regulatory agencies, federal banking agencies, and the Consumer Financial Protection Bureau (CFPB), shall submit to the President a report on the implications of developments and adoption of digital assets and changes in financial market and payment system infrastructures for US consumers, investors, businesses, and for equitable economic growth.

The Attorney General, in consultation with the Treasury Secretary and Chairman of the Federal Reserve, shall provide an assessment of whether legislative changes would be necessary to issue a US CBDC should it be deemed appropriate and in the national interest.

The Director of the Office of Science and Technology Policy and the Chief Technology Officer of the United States, in consultation with the Treasury Secretary, 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 US CBDC system should one be proposed.

The Attorney General, in consultation with the Treasury Secretary 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 Director of the Office of Science and Technology Policy, in consultation with the Treasury Secretary, 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 (DLT) 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.