Janet Yellen says Biden’s crypto executive order supports ‘responsible innovation’

A new statement from US Treasury Secretary Janet Yellen lays out how her department will implement the provisions of a long-awaited executive order from Joe Biden’s White House.

The statement, issued late Tuesday and later removed (archived version here) from the department’s website, states that “Biden’s historic executive order calls for a coordinated and comprehensive approach to digital asset policy.”

“This approach will support responsible innovation that could result in substantial benefits for the nation, consumers, and businesses,” Yellen continued. “It will also address risks related to illicit finance, protecting consumers and investors, and preventing threats to the financial system and broader economy.”

Per Yellen’s statement, the Treasury Department “will partner with interagency colleagues to produce a report on the future of money and payment systems.” Treasury will also “convene the Financial Stability Oversight Council to evaluate the potential financial stability risks of digital assets and assess whether appropriate safeguards are in place” and “work with our international partners to promote robust standards and a level playing field” given the global nature of the industry.

“This work will complement ongoing efforts by Treasury,” Yellen continued.

Recent reports have indicated that the Biden EO will have several components, all of which are centered around studying cryptocurrency and digital money across multiple US government departments and agencies. Specific topics include central bank digital currency and the environmental impact of cryptocurrencies.

“As we take on this important work, we’ll be guided by consumer and investor protection groups, market participants, and other leading experts,” Yellen’s statement concluded. “Treasury will work to promote a fairer, more inclusive, and more efficient financial system, while building on our ongoing work to counter illicit finance, and prevent risks to financial stability and national security.”