Executive Order for Digital Assets

Report on the future of money and payment systems, including the conditions that

• drive broad adoption of digital assets;
• the extent to which technological innovation may influence these outcomes; and
• the implications for the United States financial system, the modernization of and changes to payment systems, economic growth, financial inclusion, and national security.

• Research and report on the extent to which CBDCs could improve the efficiency and reduce the costs of existing and future payments systems,
• Assess the optimal form of a CBDC in the United States, and
• Develop a strategic plan for Federal Reserve and broader United States Government action that evaluates the necessary steps and requirements for the potential implementation and launch of a CBDC.

Provide an assessment of whether legislative changes would be necessary to issue a CBDC in the United States, should it be deemed appropriate and in the national interest.

Submit a legislative proposal, based on consideration of the report submitted by the Department of the Treasury regarding the future of money and payment systems (section 4(b)) and any materials developed by the Federal Reserve Board consistent with section 4(c).

• Report on the implications of developments and adoption of digital assets and changes in financial market and payment system infrastructures for United States consumers, investors, businesses, and for equitable economic growth. The report must address
• Report to address: (i) the conditions that would drive mass adoption of different types of digital assets and (ii) the risks and opportunities such growth might present to United States consumers, investors, and businesses, including a focus on how technological innovation may impact these efforts and with an eye toward those most vulnerable to disparate impacts.
• The report must also include policy recommendations, including potential regulatory and legislative actions.

• Submit 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 CBDC system should one be proposed. 
• The technical evaluation should address: (i) the technical risks of the various designs, including with respect to emerging and future technological developments, such as quantum computing.  (ii) any reflections or recommendations on how the inclusion of digital assets in federal processes may affect the work of the United States government and the provision of government services, including risks and benefits to cybersecurity, customer experience, and social safety net programs.

• Report on the role of law enforcement agencies in detecting, investigating, and prosecuting criminal activity related to digital assets.
• The report shall include any recommendations on regulatory or legislative actions, as appropriate.

Consider the effects the growth of digital assets could have on competition policy.

Consider the extent to which privacy or consumer protection measures within their respective jurisdictions may be used to protect users of digital assets and whether additional measures may be needed.

Consider the extent to which investor and market protection measures within their respective jurisdictions may be used to address the risks of digital assets and whether additional measures may be needed.

• Report to the President on (i) the connections between distributed ledger technology and short-, medium-, and long-term economic and energy transitions; (ii) the potential for these technologies to impede or advance efforts to tackle climate change at home and abroad; and (iii) the impacts these technologies have on the environment. 
• The report should also address the effect of cryptocurrencies’ consensus mechanisms on energy usage, including research into potential mitigating measures and alternative mechanisms of consensus and the design tradeoffs those may entail.

Update the report described in section 5(b)(vii) of the Executive Order.

Within 1 year of submission of the report described in section 5(b)(vii)

• FSOC to produce report outlining the specific financial stability risks and regulatory gaps posed by various types of digital assets and providing recommendations to address such risks. 
• The report should 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, including any proposals for additional or adjusted regulation and supervision as well as for new legislation. 
• The report should take account of the prior analyses and assessments of the FSOC, agencies, and the President’s Working Group on Financial Markets, including the ongoing work of the Federal banking agencies, as appropriate.

Each relevant agency may submit supplemental annexes, which may be classified or unclassified, to the National Strategy for Combating Terrorist and Other Illicit Financing  (the “National Strategy”) offering additional views on illicit finance risks posed by digital assets, including cryptocurrencies, stable coins, CBDCs, and trends in the use of digital assets by illicit actors.

90 days from the Submission to Congress of the National Strategy

• Develop a coordinated action plan based on the National Strategy’s conclusions for mitigating the digital-asset-related illicit finance and national security risks addressed in the updated National Strategy.
• The action plan shall address the role of law enforcement and measures to increase financial services providers’ compliance with AML/CFT obligations related to digital asset activities.

120 days from the submission to
Congress of the National Strategy

• Notify the relevant agencies on any pending, proposed, or prospective rulemakings to address digital asset illicit finance risks.
• The Secretary of the Treasury shall consult with and consider the perspectives of relevant agencies in evaluating opportunities to mitigate such risks through regulation.

120 days from the completion of the following reports:
(i) National Money Laundering Risk Assessment;
(ii) National Terrorist Financing Risk Assessment;
(iii) National Proliferation Financing Risk Assessment; and
and (iv) updated National Strategy

Establish a framework for interagency international engagement with foreign counterparts and in international fora to adapt, update, and enhance adoption of global principles and standards for how digital assets are used and transacted, and to promote development of digital asset and CBDC technologies consistent with United States values and legal requirements.

Report on priority actions taken under the framework for interagency international engagement with foreign counterparts and its effectiveness.

1 year from the establishment of
the 8(b)(i) Framework

Establish a framework for enhancing United States economic competitiveness in, and leveraging of, digital asset technologies.

Report on how to strengthen international law enforcement cooperation for detecting, investigating, and prosecuting criminal activity related to digital assets.

*Lead actors, as indicated by parenthetical, are directed to issue a report, take some other action, or consider a topic. The absence of a parenthetical for any action item means that each agency and/or department identified is individually directed to issue such report, take such action, or consider such topic.