I. Introduction
On March 9, 2022, President Biden signed an Executive Order on Ensuring Responsible Development of Digital Assets (the Executive Order) articulating the Administration’s policy objectives related to digital assets and marshaling the resources of multiple federal agencies — primarily in the executive branch — to study and collaborate on a regulatory approach to the proliferation of digital assets in our financial markets.1
Digital assets have many applications, but for the asset management industry, they are principally used as investments, which are primarily regulated by the Securities and Exchange Commission (the SEC) and the Commodity Futures Trading Commission (the CFTC), both independent commissions of the federal government. Notwithstanding the fact that the Executive Order asks relatively little of the SEC and CFTC compared with its requirements for executive branch agencies, the SEC and CFTC regulatory responses to the Executive Order could have important implications for the asset management industry, both with respect to the adoption and use of digital assets as well as any new financial innovation.
This alert summarizes the Executive Order’s policy statement, objectives, and the reports requested from various federal agencies and offices, followed by a focus on the Executive Order’s request for action from the SEC and CFTC. This alert concludes with key takeaways that the asset management industry can draw from the Executive Order. Read more...
_________________________
1 See Executive Order on Ensuring Responsible Development of Digital Assets (Mar. 9, 2022), available at https://www.whitehouse.gov/briefing-room/presidential-actions/2022/03/09/executive-order-on-ensuring-responsible-development-of-digital-assets/.
Information contained in this publication should not be construed as legal advice or opinion or as a substitute for the advice of counsel. The articles by these authors may have first appeared in other publications. The content provided is for educational and informational purposes for the use of clients and others who may be interested in the subject matter. We recommend that readers seek specific advice from counsel about particular matters of interest.
Copyright © 2022 Stradley Ronon Stevens & Young, LLP. All rights reserved.