Reducing risks posed by digital assets while promoting “a fairer, more inclusive, and more efficient financial system” were vowed by leaders of two key financial regulatory agencies in response to the “digital assets” executive order issued Wednesday by President Joe Biden (D).
In separate statements, the director of the Consumer Financial Protection Bureau (CFPB) and the secretary of the Treasury reacted to the order, which calls for the federal government to take a “coordinated and comprehensive approach” to digital asset policy.
CFPB Director Rohit Chopra, in his statement, said the bureau is committed to working to promote competition and innovation while reducing the risks digital assets pose to national safety and security. “We must make sure Americans in all financial markets are protected against errors, theft, or fraud,” he said.
In her statement, Treasury Secretary Janet Yellen said the order would support responsible innovation that could result in “substantial benefits for the nation, consumers, and businesses.” She said it will also address risks related to illicit finance, protecting consumers and investors, and preventing threats to the financial system and broader economy.
She noted that the order requires Treasury to produce a report on the future of money and payment systems; and to convene the Financial Stability Oversight Council (FSOC) to evaluate the potential financial stability risks of digital assets and assess whether appropriate safeguards are in place.
“As we take on this important work, we’ll be guided by consumer and investor protection groups, market participants, and other leading experts,” Yellen said. “Treasury will work to promote a fairer, more inclusive, and more efficient financial system, while building on our ongoing work to counter illicit finance, and prevent risks to financial stability and national security.”