The United States President has issued a comprehensive directive aimed at fostering innovation in digital assets while safeguarding economic freedom. This order outlines policies to support responsible growth in blockchain technology, protect the sovereignty of the US dollar, and ensure fair access to banking services. Additionally, it establishes a working group to oversee regulatory frameworks for digital assets and explicitly prohibits the establishment of Central Bank Digital Currencies (CBDCs) within the country.
Supporting Responsible Growth in Digital Assets
The directive emphasizes the importance of promoting innovation and economic development through digital assets. It seeks to protect the rights of individuals and private entities to access and use public blockchain networks without fear of persecution. The policy also aims to foster the development and global expansion of lawful and legitimate dollar-backed stablecoins, ensuring fair and open access to banking services for all law-abiding citizens and businesses.
To achieve these goals, the directive calls for clear and consistent regulations that are adaptable to emerging technologies. These regulations will provide transparency and well-defined boundaries, essential for nurturing a vibrant and inclusive digital economy. The government commits to supporting the development and deployment of software, participation in mining and validating transactions, and maintaining self-custody of digital assets. By doing so, it ensures that individuals can transact freely without unlawful censorship.
Establishment of Regulatory Framework and Prohibition of CBDCs
A key component of the directive is the establishment of the President’s Working Group on Digital Asset Markets. This group, chaired by the Special Advisor for AI and Crypto, will include high-ranking officials from various departments to identify and review existing regulations affecting the digital asset sector. Within 60 days, each agency involved will submit recommendations on whether identified regulations should be rescinded or modified. Furthermore, the Working Group will propose a federal regulatory framework governing the issuance and operation of digital assets, focusing on market structure, oversight, consumer protection, and risk management.
The directive also includes a strict prohibition on the establishment, issuance, or promotion of CBDCs within the jurisdiction of the United States. Any ongoing initiatives related to the creation of a CBDC must be immediately terminated. This measure is taken to protect the stability of the financial system, individual privacy, and the sovereignty of the United States. The Working Group will evaluate the potential creation of a national digital asset stockpile, potentially derived from cryptocurrencies seized through law enforcement efforts. Public hearings and expert consultations will be held to gather insights from leaders in digital assets and markets.