US Treasury Secretary accidentally reveals details of Biden's executive order on cryptocurrencies

U.S. Treasury Secretary Janet Yellen issued a statement on President Biden's executive order on digital assets, calling for efforts to support innovation while addressing risks in the industry.

Yellen's statement was released a day early, was clearly wrong, and was quickly deleted, but archived by the web. It shared early insights into the details of President Biden's upcoming executive order. The order will call for a "coordinated and comprehensive approach to digital asset policy."

Yellen's statement said the executive order could "deliver significant benefits to the country, consumers and businesses."

"It will also address the risks associated with illicit finance, protect consumers and investors, and prevent threats to the financial system and the wider economy."

Yellen also outlined the next steps Treasury will take in learning about digital assets and how to regulate them within the executive order.

President Biden’s White House has been working on an executive order related to digital assets since January, which an unnamed source told Barron’s that would help “give the administration Consistency of effort in the field".

To assist Treasury's work, other agencies will collaborate on a report "On the Future of Money and Payment Systems". The work will be done with the participation of international players to "promote sound standards and a level playing field".

The Treasury will also convene the Financial Stability Oversight Committee to determine whether "appropriate safeguards" exist. Yellen said her department has had ongoing work with the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) on stablecoins.

The statement implied that the executive order would have global implications as "we will work with our international partners to promote sound standards and a level playing field."

Yellen also said Treasury would continue to work with investor protection groups and various experts, saying:

"Treasury will work to promote a fairer, more inclusive and efficient financial system, while building on our ongoing work to combat illicit finance and prevent risks to financial stability and national security."

So far, prominent members of the cryptocurrency community have had mixed reactions. Week In Ethereum founder Evan Van Ness called the statement a "meaningless statement."

But Altered State Machine (ASM) founder Aaron McDonald took a more serious view of the statement. He tweeted that Yellen's sentiment suggested she was looking for a way to "ensure our military has the most powerful weapons. The dollar as a global settlement."