The U.S. Department of Commerce (”Commerce”) has issued a notice and request for comment on developing a framework for leveraging and enhancing U.S. competitiveness in digital asset technologies (which include cryptocurrencies, stablecoins, and central bank digital currencies, among others) as mandated by the Biden Administration’s March 9, 2022 Executive Order. The Executive Order directs the Secretary of Commerce, in consultation with the Secretary of State, the Secretary of the Treasury, and heads of other relevant agencies to establish a framework that will complement U.S. engagement in international fora, such as the Group of 7, Group of 20, the Financial Action Task Force and the Financial Stability Board, to elevate the importance of responsible development of digital asset technologies. The Executive Order instructs that Commerce release the framework by September 5, 2022.
The notice seeks comment from industry on matters relevant to the Commerce’s development of the framework and invites responses to seventeen (17) specific questions, including the following examples:
- What obstacles do U.S. digital asset businesses face when competing globally?
- What are the primary challenges to U.S. technological leadership in the digital assets sector?
- What impact, if any, does the global nature of the digital assets sector have on U.S. digital asset businesses’ ability to attract and retain talent and maintain leadership in development and operation of digital asset technologies within the United States?
- What, if any, is the future role of digital assets mining 2 in the U.S. digital assets sector?
- Should digital assets be given specific consideration in trade agreements? If so, to what extent? What types of provisions would be beneficial to the U.S. digital assets sector in the United States? Are there provisions that would be beneficial to U.S. businesses and consumers? and
- Can digital assets improve international payments (including trade and remittances), and improve on access to trade finance? If so, how? How do digital assets compare to other initiatives in payments such as the Federal Reserve’s FedNow?
Comments are due to Commerce by July 5, 2022.
Next steps
This is a unique opportunity for our clients to comment on and shape the U.S. Government’s approach to promoting and regulating digital asset technologies, such as crypto and virtual currencies, stablecoins, and central bank digital currencies. Hogan Lovells would be pleased to assist you with participating in this comment process by leveraging our extensive and cross-border knowledge and experience with digital asset technologies and the agencies involved in contributing to this and other frameworks called for by the Executive Order.
Authored by Elizabeth Boison and Patrick de Laperouse.
