April Edition 2022

33 Authors: Andrew Boutros, Partner (Chicago, Washington, D.C.) Steven Engel, Partner (New York, Washington, D.C.) Mark Perlow, Partner (San Francisco) Timothy Spangler, Partner (Los Angeles, Silicon Valley) Chante Eliaszadeh, Associate (Los Angeles) Paul Kingsbery (Associate, New York) Andrew Schaffer (Associate, New York) Biden Executive Order on Ensuring Responsible Development of Digital Assets By Dechert LLP On March 9, President Biden issued an Executive Order entitled Ensuring Responsible Development of Digital Assets.1 The President’s Order represents the first time that the U.S. government has sought to develop a coordinated plan for the regulation of digital assets. The Order specifies key policy objectives, including protecting US consumers, investors, and businesses and preserving the stability of the U.S. and global financial systems. Although the Executive Order attempts to balance the risks and potential benefits of digital assets, it focuses on and prioritizes addressing the risks. The Order directs senior officials to participate in an interagency process that will produce reports on various topics relating to digital assets. The upcoming months will likely prove critical for developing digital asset policies for years. Policy Ambiguities Remain The Executive Order does not resolve digital asset policy questions. Instead, the Order recognizes policy goals and establishes a process to achieve those goals. TheOrder’s key policy goals reveal the Administration’s thinking on future policy development. It recognizes the potential value of a U.S.-issued Central Bank Digital Currency (“CBDC”) and expresses the 1 Exec. Order No. 14067 of Mar. 9, 2022, 87 Fed. Reg. 14143 (Mar. 14, 2022), available at https:// www.whitehouse.gov/briefing-room/presidential-actions/2022/03/09/executive-order-on-ensuringresponsible-development-of-digital-assets/.