- New White House digital asset working group to propose federal regulatory framework within 180 days.
- Executive order supports public blockchain access and self-custody while promoting dollar-backed stablecoins.
- Banking regulators excluded from working group despite stablecoin oversight role.
- Order explicitly prohibits Central Bank Digital Currency (CBDC) development.
- Previous Biden administration’s digital asset policies and Treasury framework revoked.
The White House has issued a new executive order reshaping U.S. digital asset policy, establishing a regulatory working group led by David Sacks and excluding traditional banking regulators from direct oversight of stablecoin regulations.
Working Group Structure and Mandate
The working group comprises leaders from 11 federal agencies, including the Treasury Department, Commerce Department, SEC, and CFTC. Notable exclusions include the Federal Reserve and other banking regulators, marking a departure from previous regulatory approaches. The group must present regulatory recommendations within six months.
A significant directive involves creating a national digital asset stockpile, primarily through asset seizures. The order emphasizes protecting self-custody rights and supporting public blockchain participation while promoting dollar-backed stablecoins globally.
Banking Sector Impact
The exclusion of banking regulators represents a shift from previous policies. The decision follows controversies surrounding Signature Bank’s closure and Custodia Bank’s rejected Federal Reserve membership application. The USDF Consortium’s delayed launch for interbank distributed ledger payments highlights regulatory hurdles faced by traditional banks in blockchain adoption.
CBDC Implications
The order’s CBDC prohibition affects both retail and wholesale versions. This restriction could impact international initiatives like Project Agorá, where the Bank for International Settlements coordinates cross-border payment improvements with seven central banks. The gap in dollar-based settlement might benefit private solutions like Fnality, which tokenizes bank reserves through omnibus accounts.
International developments contrast with U.S. restrictions, as demonstrated by the European Central Bank’s recent distributed ledger trials involving 64 institutions in digital bond issuance and settlement experiments.
The order replaces previous cryptocurrency policies, including the Treasury’s international engagement framework, which had emphasized CBDC development, anti-money laundering coordination with FATF, and OECD cryptocurrency tax initiatives.
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