Executive Order on Ensuring Responsible Development of Digital Assets

The following order is hereby issued by the authority vested in the President by the Constitution and the laws of the United States.

Section 1: Policy Overview

The U.S. recognizes the rapid growth of digital assets and blockchain technologies, with a market cap rising from $14 billion in 2016 to $3 trillion in 2021. These innovations bring opportunities but raise serious concerns – consumer protection, privacy, financial stability, crime, and environmental impact. As global adoption grows and regulations remain uneven, the U.S. must modernize its approach to encourage safe innovation, financial inclusion, and secure digital infrastructure.

Section 2: National Objectives

(a) Protect Consumers and Investors

Without strong oversight, digital assets can expose users to fraud, cyberattacks, and fund loss. The U.S. aims to promote responsible innovation that ensures privacy, transparency, and accountability.

(b) Safeguard Financial Stability

Rapidly growing platforms may lack proper regulation, increasing systemic risk. U.S. policy will apply the principle: “same business, same risks, same rules” to ensure fair and stable markets.

(c) Combat Illicit Use

Digital assets can be used for money laundering, cybercrime, and sanctions evasion. The U.S. will strengthen oversight, work with international partners, and enforce anti-money laundering standards globally.

(d) Lead in Financial Innovation

To stay globally competitive, the U.S. must lead in setting standards for digital assets that reflect democratic values, economic strength, and the central role of the U.S. dollar.

(e) Expand Financial Access

The government supports digital tools that lower costs and improve access for underserved Americans, while ensuring that innovations benefit all communities fairly.

(f) Promote Responsible Tech Development

Digital systems must be built with privacy, national security, and sustainability. The U.S. encourages architecture that limits illicit use and reduces environmental harm, such as that caused by high-energy crypto mining.

Section 3: Coordination of Government Actions

The Assistant to the President for National Security Affairs (APNSA) and the Assistant for Economic Policy (APEP) will lead the coordination of federal actions under this order, using the interagency process outlined in National Security Memorandum 2 (Feb. 4, 2021). This coordination includes collaboration with key Cabinet members, agency heads, and, when appropriate, regulatory agencies such as the Federal Reserve, SEC, CFTC, CFPB, FDIC, and others, while respecting their regulatory independence.

Section 4: U.S. Policy on Central Bank Digital Currencies (CBDCs)

(a) Policy Priorities

The U.S. prioritizes exploring a CBDC to ensure financial innovation aligns with national interests. Any U.S. digital currency must support:

• Consumer and investor protection
• Financial stability
• National security and human rights
• Equitable access to financial services
• Privacy, transparency, and international interoperability

A U.S. CBDC could enable faster, lower-cost cross-border payments, improve financial inclusion, and maintain the global role of the U.S. dollar, while addressing the risks posed by private digital assets. The Administration supports worldwide engagement and leadership in CBDC development through international partnerships and pilot projects.

(b) Treasury Report on the Future of Money

Within 180 days, the Secretary of the Treasury, in consultation with other federal agencies, must deliver a report to the President on:

1. The drivers and adoption of digital assets
2. The role of technology in shaping payment systems
3. The impact on U.S. financial stability and economic growth
4. Financial inclusion and equity implications
5. Risks and opportunities of a U.S. CBDC compared to private and foreign digital currencies
6. National security, human rights, and illicit finance considerations

(c) Federal Reserve Responsibilities

The Chair of the Federal Reserve is encouraged to:

• Continue research on how a CBDC could improve the payment system
• Evaluate the most effective design options
• Develop a strategic roadmap for a potential CBDC rollout
• Assess CBDC impact on monetary policy and economic stability

(d) Legal Review by the Attorney General

The Attorney General, in consultation with the Treasury and the Federal Reserve, will:

1. Submit an assessment within 180 days on whether new legislation is required to issue a U.S. CBDC
2. Provide a legislative proposal within 210 days, based on Treasury’s findings and the Federal Reserve’s input

Section 5: Protecting Consumers, Investors, and Businesses

(a) Overview

As digital assets and trading platforms expand, so do risks – including fraud, theft, cyberattacks, privacy violations, and unequal financial impacts. It's essential to ensure these technologies don’t harm consumers or exacerbate financial inequality and are integrated responsibly into the financial system.

(b) Required Actions and Reports

1. Treasury Report (Within 180 Days)
   In coordination with labor and financial regulators (e.g., the SEC, CFTC, and CFPB), the Treasury will report on the impacts of digital assets on consumers, businesses, and economic equity. It will explore adoption trends, risks, and innovations, and recommend regulation and inclusion.
2. CBDC Technical Infrastructure Evaluation
   The Office of Science and Technology Policy (OSTP) and the U.S. Chief Technology Officer, in consultation with the Treasury and Federal Reserve, will assess what technical resources are needed to support a U.S. CBDC system, including risks from future technologies like quantum computing and the potential impact on government operations.
3. Law Enforcement Report on Digital Crimes
   With Treasury and Homeland Security, the Attorney General will report how law enforcement investigates and prosecutes digital asset-related crimes and offer legislative or regulatory recommendations.
4. Competition and Consumer Protections
   The FTC, CFPB, and DOJ are encouraged to examine how digital assets affect competition, privacy, and consumer protections, and whether new safeguards are needed.
5. Investor and Market Safeguards
   Financial regulators such as the SEC, CFTC, Federal Reserve, FDIC, and OCC are urged to evaluate whether existing protections sufficiently address risks in digital markets or if additional measures are necessary.
6. Environmental and Energy Impact Report
   OSTP, with EPA, Treasury, Energy, and others, will study how blockchain and distributed ledger technologies affect energy consumption, climate change, and economic transitions. The report will examine:
   • Blockchain use for environmental tracking (e.g., emissions or resource trading)
   • Energy policy implications (e.g., grid reliability, efficiency incentives, energy sourcing)
     A follow-up report updating these findings and addressing knowledge gaps will be submitted within one year.

Section 6: Promoting Financial Stability and Market Integrity

(a) Context

Digital assets may pose risks to the broader financial system. Since 2017, the Treasury has worked with the Financial Stability Oversight Council (FSOC) to assess regulatory gaps and threats to financial stability.

(b) FSOC Report (Within 210 Days)

The Treasury will convene the FSOC to produce a report identifying risks posed by various digital assets and recommending regulatory or legislative actions to address them. This includes:

• Risk-based evaluations of asset types
• Proposals for updated supervision and oversight
• Input from previous FSOC and interagency analyses

Section 7: Combating Illicit Finance and National Security Threats

Digital assets have been increasingly used for crimes such as ransomware, money laundering, terrorism financing, and fraud, creating serious national security concerns. Technological advances can both help and hinder efforts to combat these threats.

Key Actions:

• Supplemental Risk Assessments: Within 90 days of submitting the National Strategy for Combating Terrorist and Other Illicit Financing, key federal agencies may submit additional annexes on the risks posed by digital assets (e.g., cryptocurrencies, stablecoins, and CBDCs).
• Coordinated Action Plan: Within 120 days of the strategy’s submission, the Treasury will lead an interagency action plan to address illicit finance risks related to digital assets. The plan will focus on law enforcement and improving compliance with anti-money laundering (AML) and counter-terrorist financing (CFT) requirements.
• Regulatory Review: After completing major risk assessments (on money laundering, terrorist financing, and proliferation financing), the Treasury will notify agencies of upcoming rules to address digital asset risks, ensuring interagency collaboration.

Section 8: Strengthening International Cooperation and U.S. Competitiveness

Digital assets are global. The U.S. seeks to set international standards that uphold democratic values, enhance security, and support responsible innovation.

International Goals:

• Collaborate with global partners (e.g., G7, G20, FATF, FSB) to ensure high standards, reduce regulatory arbitrage, and improve cross-border payment systems.
• Continue leadership in technical discussions and standard setting for CBDCs, stablecoins, and blockchain interoperability.
• Promote transparency, innovation, and sound governance in digital financial systems.

Implementation Steps:

1. International Engagement Framework (120 Days):
   Treasury, in collaboration with other agencies, will develop a coordinated approach to engaging with foreign governments and global institutions. This approach will include priority actions, messaging, and capacity-building initiatives.
2. Progress Report (1 Year After Framework):
   Treasury will report on achievements and the effectiveness of international engagement efforts.
3. Competitiveness Framework (180 Days):
   Commerce will establish a plan to enhance U.S. competitiveness in digital asset technologies.
4. Law Enforcement Cooperation Report (90 Days):
   The Attorney General will report on strengthening international law enforcement cooperation to combat digital asset-related crimes.

Section 9: Definitions

• Blockchain: A shared digital ledger linking verified transactions using cryptography.
• CBDC (Central Bank Digital Currency) is a digital currency issued by a central bank denominated in national currency.
• Cryptocurrencies: Digital assets using cryptographic distributed ledgers, such as blockchains.
• Digital Assets: A broad category including cryptocurrencies, stablecoins, and CBDCs – used for payments, investment, or value transfer.
• Stablecoins: Cryptocurrencies designed to maintain stable value through mechanisms like pegging to fiat currencies or algorithmic supply control.

Section 10: General Provisions

• This order does not override existing laws or agency authority.
• Implementation must comply with applicable laws and available funding.
• The order does not create legal rights enforceable by individuals or entities.