Today the White House announced the âFirst-Ever Comprehensive Framework for Responsible Development of Digital Assetsâ. At the same time, the Treasury released three papers to comply with President Bidenâs Executive Order from six months ago. While thereâs nothing wrong with any of the documents, the papers and framework are still somewhat vague rather than providing definitive direction. Hence one expects there will be more of the same, with greater urgency around a digital dollar.
The White House Framework announcement promises another report next month from the Financial Stability Oversight Council (FSOC), which addresses financial stability risks and identifies regulatory gaps. Perhaps that might provide more specific direction.
The framework firstly places the âhighest urgencyâ on research for a digital dollar, including a cross agency working group. Secondly, it will âexecute a comprehensive action plan to mitigate key risks of cryptocurrenciesâamong others, money laundering and financing for terrorism.â The third action point is consumer protection.
Regarding the Treasury publications, âThe reports clearly identify the real challenges and risks of digital assets used for financial services,â said Treasury Secretary Janet Yellen. âAt the same time, if these risks are mitigated, digital assets and other emerging technologies could offer significant opportunities.â
There are a few points from the digital dollar paper we will highlight in a later piece.





















