The Financial Stability Oversight Council held a meeting today, and part of the discussion revolved around digital assets.
In the readout, the Council noted that Treasury staff provided an update on digital assets and the report that is being prepared following the recent Executive Order on Ensuring Responsible Development of Digital Assets. The Council expects to issue the report in October 2022.
Little additional information was provided.
The Council includes representatives from all of the major financial regulators as well as several state regulators. The chair is Secretary of the Treasury, Janet Yellen.
The recent Executive Order has received a certain amount of criticism from both sides of the fence with some policymakers slamming the document as enabling crypto fraud and others as “kicking the can down the road.” Treasury Staff leadership regarding digital assets has pursued a more balanced approach of recognizing the benefits of distributed ledger technology and the need for the US to lead innovation – albeit with a keen eye on investor protection and any potential for systemic risk.