Ensuring Responsible Development of Digital Assets

March 9, 2022

Executive Order 14067 directed federal agencies to coordinate policy development for digital assets including cryptocurrencies, stablecoins, and potential central bank digital currency. The order tasked agencies with studying consumer protection, financial stability, illicit finance, U.S. competitiveness, financial inclusion, and responsible innovation. Because the order was primarily study-focused rather than enforcement-oriented, its direct constitutional impact was limited. However, it raised questions about whether the executive branch can create a comprehensive regulatory framework for an entirely new asset class without congressional legislation, and whether directing agencies to develop regulatory approaches constitutes de facto rulemaking that should originate in Congress. The order also implicated privacy concerns related to potential government surveillance through a central bank digital currency.