Key Takeaways
- Trump signed an executive order to establish an internal working group tasked with fostering crypto innovation and development in the U.S.
- The order also prohibits the issuance, circulation, and development of a U.S. central bank digital currency (CBDC),
On January 23, newly-elected US President Donald Trump signed an executive order to establish an internal working group tasked with fostering crypto innovation and development in the U.S. The move, announced during a televised address from the Oval Office, marks a significant policy shift aimed at positioning the U.S. as a global leader in the digital asset space. Trump was joined by David Sacks, his newly appointed “AI and crypto czar,” who outlined key elements of the order.
This group will examine several key areas, including the potential creation of a regulatory framework for stablecoins and the establishment of a national digital asset stockpile. The working group, chaired by Sacks, is expected to include members of Trump’s cabinet, the Treasury Secretary, Attorney General, and leaders from agencies like the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC).
The order also prohibits the issuance, circulation, and development of a U.S. central bank digital currency (CBDC), delivering on a promise Trump made during his presidential campaign. Critics of CBDCs, including Trump, have argued they could lead to excessive government control over financial systems. This provision directly overturns a March 2022 executive order from former President Joe Biden that directed federal agencies to explore a regulatory framework for digital assets.
Under Biden, regulators took a strict stance on crypto, pursuing legal actions against major exchanges like Coinbase and Binance for alleged violations of U.S. laws—claims both companies have denied. The new executive order signals a more accommodating approach, with Trump’s administration seeking to promote crypto-related innovation while addressing regulatory challenges.
One intriguing aspect of the executive order is its call to explore the creation of a national crypto stockpile. The stockpile could potentially include digital assets lawfully seized by the federal government through enforcement actions. This proposal aims to centralize resources and strengthen the country’s strategic position in the cryptocurrency sector.
President Trump’s shifting views on crypto have been evident since his campaign for a second term. Once a vocal critic of digital assets, he adopted a more favorable stance during the 2024 election cycle, securing significant financial backing from the crypto industry. Reports indicate that cryptocurrency firms and executives contributed heavily to Trump’s campaign, accounting for nearly half of corporate donations.
However, questions remain about the executive order’s long-term impact and its enforceability. The extent to which presidential authority implements such policies through executive action is often subject to judicial review. This directive could face legal challenges, similar to other recent executive orders issued by Trump.
