US Treasury, White House Staff Respond to POTUS Call for Crypto Plan

In March 2022 President Biden issued executive order EO14067 on digital assets tasking federal agencies to coordinate their work on developing a framework for the country’s plan on digital assets. US Treasury, the White House Office of Science and Technology Policy (OSTP) presented their response reports in a joint call.

US Treasury came up with three reports structured as follows:

1. The Future of Money and Payments (general overview of money functions, current state and directions)
2. Implications for Consumers, Investors, and Businesses (current crypto asset industry and issues)
3. Action Plan to Address Illicit Financing Risks of Digital Assets (US Treasury recommendations on potential risks)

In her presentation of the reports Secretary Yelen mentioned:

“Innovation is one of the hallmarks of a vibrant financial system and economy.  But as we’ve painfully learned from history, innovation without adequate regulation can result in significant disruptions and harm to the financial systems and individuals.  And this is especially true for communities that are most vulnerable to these risks”.

Alondra Nelson, the head of OSTP, the US president’s science and technology think tank, introduced their two reports as follows:

• Climate and Energy Implications of Crypto-Assets in the United States, and
• Technical Possibilities for a U.S. Central Bank Digital Currency

The later is rather academic discussion of technical features of general digital currencies rather than specific US choice. Federal Reserve whitepaper had more details on the preferences sought by US central bank in this regard.

After the presentation, the call continued with Q&A with undisclosed “Senior Administration Officials”. Among other things, they covered the Fed’s activities and SEC/CFTC dispute on digital asset regulation.

Stay tuned and we will cover all these stories in the coming observations.