The global digital assets market has experienced remarkable growth, reaching a market capitalization of $3 trillion in November 2021, with 16% of American adults participating in digital assets. In response to the opportunities and risks presented by this expansion, the U.S. government has initiated a comprehensive approach to address challenges and harness potential benefits.

President Biden's Executive Order on Ensuring Responsible Development of Digital Assets outlined a whole-of-government strategy to tackle risks and opportunities. Over the past six months, government agencies have collaborated to develop frameworks and policy recommendations aligning with six key priorities: consumer and investor protection, financial stability, countering illicit finance, U.S. leadership in the global financial system, financial inclusion, and responsible innovation.

Nine reports submitted to the President reflect diverse stakeholder input and articulate a clear framework for responsible digital asset development. They advocate for measures to promote innovation and mitigate downside risks through increased enforcement and efficiency standards for cryptocurrency mining. Despite significant risks due to their volatile nature, digital assets pose risks for consumers, investors, and businesses.

The Biden-Harris Administration and independent regulators have been working to safeguard consumers and ensure fair play in digital assets markets through guidance, increased enforcement resources, and pursuing fraudulent actors. Additional measures include encouraging regulators to pursue investigations and enforcement actions against unlawful practices and collaborating to address acute digital assets risks. Public-awareness efforts will also be spearheaded to educate consumers about risks involved with digital assets.