Federal authorities not included in Trump's order for digital asset work group formation
The White House published an executive order on digital financial technology yesterday, marking a significant step towards regulating the digital asset sector. The order creates a digital asset working group, to be chaired by David Sacks, and tasked with proposing a federal regulatory framework within six months.
The digital asset working group consists of the heads of 11 government agencies, including the Treasury Secretary, Commerce Secretary, SEC Chair, and CFTC Chair. Interestingly, the Federal Reserve and other banking regulators are not part of the group. However, the Chair of the digital asset working group has the ability to invite other agencies with relevant expertise, including personnel from the Pentagon.
The executive order focuses on stablecoin payments and stablecoins, a specific type of digital asset. It evaluates the potential for creating a national digital asset stockpile, with the likely source being asset seizures. However, the executive order does not mention the creation of a national digital asset stockpile as a priority.
The regulations covered by the executive order do not provide details on how the national digital asset stockpile would be managed or secured. Furthermore, the order does not specify how the national digital asset stockpile would be used, if created. Additionally, the executive order does not provide a timeline for the implementation of the proposed regulatory framework beyond the six-month deadline for the digital asset working group's proposal.
Interestingly, the executive order does not mention any penalties or consequences for non-compliance with the proposed regulatory framework. This raises questions about the enforcement mechanisms that will be put in place to ensure compliance.
In conclusion, the White House's executive order on digital financial technology is a significant step towards regulating the digital asset sector. The digital asset working group, chaired by David Sacks, has been established to propose a federal regulatory framework within six months. The order focuses on stablecoin payments and evaluates the potential for creating a national digital asset stockpile, but does not provide details on the management, security, or use of such a stockpile. The order does not mention any penalties for non-compliance, leaving questions about enforcement mechanisms unanswered.
