National Community Reinvestment Coalition (NCRC) President and CEO Jesse Van Tol on Wednesday made the following statement in response to President Biden’s executive order for a “whole-of-government” approach to regulating digital assets:
“Millions of Americans are now using digital assets as substitutes for traditional financial services. It is essential that like activities have like regulation — and we know that consumers fare better when their financial services fall within the bank regulatory system.
“Today’s executive order calls for regulators to act on policy concerns in seven critical areas. The expansive scope of the order underscores the breadth of the challenges presented by these new technologies and highlights how they may harm consumers and create systemic risks. We agree with a whole-of-government approach that prevents loopholes and protects against fraud.
“Several regulators have already taken steps to study the questions posed by stablecoins, cryptocurrencies, and blockchain, but today’s order is significant because of its thoughtful emphasis on the need for coordinated interagency policymaking.
“In seeking regulators to work expeditiously, the administration has rightfully chosen to seek action sooner rather than later. We know that millions of Americans are experimenting with digital assets, with disproportionately higher rates of usage among low-wealth households and those of color. It is important for regulators to get ahead before too many vulnerable households are harmed by markets that are largely outside of the regulatory perimeter.”
