The order talks about consumer rights, economic stability, risk management, the United States' financial leadership, and access to financial services.

The Executive Order signed by Biden would be the first government-wide approach to dealing with the risks and benefits of digital assets and the technology that underpins them. 

Central Bank Digital Currency (CBDC)

It was required that the White House get a report on the possible financial costs and benefits of a digital currency by September of this year from the Treasury, Justice, and State Departments.

The executive order asked for the study to look at how a digital dollar could help people get into the financial system, help the economy grow, and how digital currencies could hurt the dollar's status as the world's reserve currency.

As a result, the Federal Reserve was told to keep looking into the feasibility of a digital dollar and develop an "implementation plan."

The attorney general will also have to figure out if legislation is needed to make the digital dollar work, write a legislative proposal that considers research from the Federal Reserve and the Treasury, and so on.

Other Digital Asset Risks and Possibilities

As part of Biden's executive order, he also asked the top financial regulators in the United States to write public reports about how digital assets could affect people, businesses, and the economy in the next four to six months.

"Mass adoption of different types of digital assets" and their risks and opportunities should also be explained by the government.

Cryptocurrency's Involvement in illegal financing

The Biden administration is worried that the growing popularity of digital assets could make it more likely to be used to hide money, fund terrorist groups, or help with other types of cybercrime.

Such an EO required the Treasury, DNI, Homeland Security departments, and other agencies to explain how cryptocurrencies could be used for illegal financing and come up with a plan to reduce the risks.

The White House asked the Treasury Department to use that action plan and other interagency studies as the foundation for any new rules that need to be made about how cryptocurrencies might be used to do illegal things.

Conclusion

DeFi is increasing now. President Biden signed the executive order to make the sector more important to look at. This should help build trust and encourage people to use DeFi. The decentralization principle will be challenged by more government involvement, but if the company keeps going in the same direction, it won't stop it from being innovative.