CFPB’s Chopra: Biden Order Recognizes Digital Asset Markets’ ‘Profound Implications’

Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra has commented on an executive order regarding cryptocurrency that President Joe Biden signed Wednesday (March 9) to mark the first step toward regulating how digital currency is traded.

Read more: Biden Issues Executive Order to Fast-Track Crypto Policy

The order, Ensuring Responsible Development of Digital Assets, requires the federal government to create a strategy for digital assets that promotes innovation in the industry while minimizing risks to investors in the United States and the global financial system.

It directs the Federal Reserve Board to research and develop a digital dollar, similar to cryptocurrencies that have become a financial asset for some Americans.

In addition, the order instructs the U.S. Department of Treasury to craft guidelines that protects consumers who use and trade cryptocurrency from fraud and market volatility. Treasury has also been tasked with researching the potential role of digital assets in future payment systems.

“Today’s executive order recognizes that the dramatic growth in digital asset markets has created profound implications for financial stability, consumer protection, national security, and energy demand,” Chopra said in a statement.

The agency is committed to promoting competition and innovation, while also reducing the risks that digital assets potentially pose to safety and security, he added.

“We must make sure Americans in all financial markets are protected against errors, theft, or fraud,” Chopra said.

This week, the chairman of the U.S. Senate Finance Committee urged fellow Democrats to protect cryptocurrency innovators.

See more: US Senate Finance Committee Chair Urges Caution on Crypto Rules

Sen. Ron Wyden warned regulators not to diminish innovation in digital finance as the Biden administration considers rules for the unregulated sector.

“There is obviously a debate [about stricter regulation], but I want to be on the side of the innovator,” Wyden said. “I keep looking for innovations. That’s where my heart lies.”