President Trump’s Executive Order on Jan. 23, 2025, rejects CBDCs, outlines digital asset innovation goals, and creates a working group to revamp crypto regulations.
Trump Signs Executive Order Advancing U.S. Leadership in Digital Assets
President Donald Trump signed a significant executive order focused on the future of digital assets, blockchain technology, and the regulation of cryptocurrencies. The order lays out a framework for promoting innovation while safeguarding financial independence and rejecting central bank digital currencies (CBDCs).
Rejection of CBDCs and Emphasis on Monetary Independence
Central to the directive is the administration’s opposition to CBDCs. The Executive Order prohibits any federal action to develop or endorse a U.S. CBDC, citing concerns over potential threats to financial stability, individual privacy, and national sovereignty. Federal agencies are now directed to terminate ongoing CBDC projects and halt future initiatives in this area.
Reevaluation of Federal Regulations and Creation of Working Group
The order also repeals Executive Order 14067 from 2022 and the Treasury Department’s digital asset framework. The administration mandates federal agencies to review and update existing regulations on digital assets within 60 days. Additionally, a new President’s Working Group on Digital Asset Markets will be formed, chaired by a special advisor in AI and cryptocurrency, to create a comprehensive regulatory framework.
Potential for National Digital Asset Reserve
Another significant measure in the order is the exploration of a national digital asset reserve, potentially sourced from legally confiscated cryptocurrencies. This proposal aligns with growing interest from cryptocurrency advocates hoping to incorporate digital assets like Bitcoin into national reserves, though it is not explicitly addressed in the executive order.
Stay updated on the latest developments in U.S. digital asset regulation. Follow the progress of the President’s Working Group and the potential shift in the nation’s approach to blockchain technology.
