In particular, it highlights a number of key topics that fall within the ambit of these agencies. While the Executive Order makes clear that digital assets are not exclusively a matter for the federal banking and other financial regulators to tackle, there are clearly central roles for these agencies in implementing the EO. allies and partners to ensure a secure international response. government agencies to mitigate these cyber-risks, which the EO treats as “finance and national security risks,” and directs the agencies to work with U.S. The EO also emphasizes the Biden Administration’s concern for the potential illicit use of digital assets and the related financial and national security concerns, which include “money laundering, cybercrime, and ransomware.” Against the backdrop of the proliferation of ransomware attacks and recently imposed sanctions due to Russia’s invasion of Ukraine, the EO calls for coordinated action across all relevant U.S. The director of the Office of Science and Technology Policy and the chief technology officer of the United States are similarly ordered to produce a technical evaluation with the same concerns in mind, in consultation with Treasury and the Federal Reserve. With increased use of digital assets and exchanges there may be increased risk of fraud and theft, privacy and data breaches, unfair and abusive acts or practices, and other cyber-incidents. The EO states that the Secretary of the Treasury must work with the Secretary of Labor and other relevant agencies to determine what measures are needed to protect consumers, investors, and businesses amid the increased use of digital assets. We must make sure Americans in all financial markets are protected against errors, theft, or fraud.”Ĭybersecurity directives run through various components of the EO, underscoring the Administration’s growing concern with the security and stability of digital assets. “The Consumer Financial Protection Bureau is committed to working to promote competition and innovation, while also reducing the risks that digital assets could pose to our safety and security. Specifically, FTC Chair Lina Khan and CFPB Director Rohit Chopra will consider if privacy or consumer protection measures within their jurisdictions may be used to protect users of digital assets and whether additional measures may be needed to balance the need for digital anonymity with avoiding consumer deception.įollowing the EO, Chopra released a statement echoing the need to study the capacity for consumer harm within the CFPB’s subject-matter review of digital assets. The Executive Order (EO) establishes policy objectives related to digital assets and directs agencies and other Executive Branch members to take actions in developing a coordinated government approach to meet these policy objectives.Ĭonsumer protection, privacy, and data security are all core consumer protections that will be evaluated by the Secretary of the Treasury and Secretary of Labor in consultation with the Federal Trade Commission (FTC), Securities and Exchange Commission (SEC), and Consumer Financial Protection Bureau (CFPB). On March 9, 2022, President Biden issued his Executive Order on Ensuring Responsible Development of Digital Assets.
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