US Department of Commerce Seeks Comment on Development of Digital Asset Technologies Framework as Directed by Biden Executive Order | Practical Law

US Department of Commerce Seeks Comment on Development of Digital Asset Technologies Framework as Directed by Biden Executive Order | Practical Law

The US Department of Commerce issued a request for comment (RFC) on development of a digital asset technologies framework as mandated under President Biden's March 9, 2022 executive order on digital assets.

US Department of Commerce Seeks Comment on Development of Digital Asset Technologies Framework as Directed by Biden Executive Order

by Practical Law Finance
Published on 01 Jun 2022 • USA (National/Federal)
The US Department of Commerce issued a request for comment (RFC) on development of a digital asset technologies framework as mandated under President Biden's March 9, 2022 executive order on digital assets.
On May 19, 2022 the US Department of Commerce issued a request for comment (RFC) on development of a digital asset technologies framework as mandated under President Biden's March 9, 2022 Executive Order on digital assets (EO 14067) (87 FR 14143) (see Legal Update, President Biden Signs Comprehensive Executive Order on Digital Assets Including Exploration of US CBDC). The RFC notes that EO 14067 outlined US policy objectives regarding digital assets and directed the relevant agencies, including the Department of Commerce, to establish a framework for enhancing US economic competitiveness in digital asset technologies. The RFC provides the opportunity for interested parties to provide input and recommendations for consideration in Commerce’s development of the economic competitiveness framework under EO 14067.
EO 14067 directed the Department of Commerce to promote US leadership in technology and economic competitiveness, to reinforce US leadership in the global financial system, and 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. EO 14067 instructed Commerce to release its framework for enhancing US economic competitiveness in, and leveraging of, digital asset technologies by September 5, 2022.
The RFC seeks public comment on 17 questions in the three topic areas of:
  • Competitiveness.
  • Comparisons to "traditional" financial services and financial inclusion considerations.
  • Technological development.
These questions include:
  • What obstacles do US digital asset businesses face when competing globally and what steps could the US government take to address those obstacles?
  • What are the primary challenges to US technological leadership in the digital assets sector?
  • What impact does the global nature of the digital assets sector have on US digital asset businesses’ ability to maintain leadership in digital asset technologies within the US?
  • What is the future role of digital assets mining in the US digital assets sector, and can digital assets be compatible with a low-carbon economy that emphasizes renewable energy?
  • What impact will global deployment of central bank digital currencies (CBDC) have on the US digital assets sector and to what extent would the design of a US CBDC impact the sector?
  • Should digital assets be given specific consideration in trade agreements and if so, are there provisions that would be beneficial to US businesses and consumers?
  • What other factors related to economic competitiveness should Commerce consider in the development of its framework?
  • What factors that have driven and sustained the global leadership of US-based legacy financial institutions will foster the same leadership for US digital asset businesses?
  • Can digital assets improve international payments (including trade and remittances), and improve on access to trade finance?
  • What new security concerns does increased adoption of digital assets raise?
Commerce also welcomes public comment on any matter believed relevant to Commerce’s development of the framework for enhancing US economic competitiveness in, and leveraging of, digital asset technologies.
Public comment on the RFC is due by 5:00 p.m. Eastern Time on July 5, 2022.