April Edition 2022

34 intention that any CBDC should function like the traditional US dollar.2 Whether a CBDC can effectively maintain the status quo remains to be seen, but that is the Order’s aim. Other major focus areas of the Order are to prevent the use of cryptocurrency for illicit transactions and to promote investor and market protection. As such, this Administration does not expect agencies to support loosening current regulations.3 The Order also raises-but does not resolve-whether digital asset risks should be commensurate with that of other heavily regulated financial products. These different agencies may take different degrees of “encouragement” from the Order in enforcing existing rules. Required Agency Reviews The reports required by the Executive Order will involve multiple federal agencies analyzing, among other matters: (1) possibly creating a CBDC; (2) digital assets’ impact on US consumers, investors, and businesses; (3) law enforcement’s role in investigating/prosecuting criminal activity relating to digital assets; and (4) impacts of blockchain technology on the environment.4 The President has directed the Financial Stability Oversight Council (“FSOC”) to report on digital assets’ financial stability risks and any related regulatory gaps.5 The Order taps the Treasury Department to lead much of the work for policy formation.6 But the Order includes a key role for the Department of Justice (“DOJ”).7 The Order also envisions the FTC, SEC, CFTC, CFPB, and federal banking agencies will play roles in these interagency deliberations.8 Thus, every federal agency that has been involved in regulating digital assets or enforcing relevant laws, is expected to be included in interagency processes. However, by placing an interagency process at the center, the Executive Order does not resolve any of the hard questions regarding the proper role and jurisdiction of each agency that seeks authority relating to digital assets. 2 Id. § 4(a)(ii)–(iii), 87 Fed. Reg. at 14145–46. 3 Id. § 7(b), (c), 87 Fed. Reg. at 14149. 4 Id. §§ 4, 5, and 6, Fed. Reg. at 14145–47. 5 Id. § 6(a), 87 Fed. Reg. at 14148. 6 Id. §§ 4(b), 5(b), 7(c), 8(b)(i), 87 Fed. Reg. at 14146–47, 14149, 14151. 7 Id. §§ 4(d), 5(b)(iii), 5(b)(iv), 8(b)(iv), 87 Fed. Reg. at 14146–48, 14151. 8 Id. §§ 3, 5(b)(v), 87 Fed. Reg. at 14145, 14148.