On Thursday, President Donald Trump signed an executive action that addresses key promises he made to the cryptocurrency industry during his 2024 campaign.
“The digital asset industry plays a critical role in driving innovation and economic growth in the United States, as well as our nation’s international leadership,” the order said.
“It is therefore my administration’s policy to support the responsible development and use of digital assets.”
Here are the details of what the order does and doesn’t do, and its implications for the crypto world.
Creation of a Presidential Working Group on Digital Assets
The executive order establishes a task force to coordinate the development of clear rules for the digital asset industry.
Chaired by White House AI and crypto czar David Sachs, the group will include high-ranking officials such as the Treasury Secretary and SEC Chairman.
The key tasks of the group include identifying all existing regulations and policies affecting crypto within 30 days as well as submitting recommendations on these policies within 60 days.
The task force will also be required to deliver a comprehensive report with legislative and regulatory proposals within 180 days.
Nathan McCauley, CEO of Anchorage Digital, praised the move, saying it was an “important first step” toward consistent and transparent regulation.
Valuation of National Digital Asset Repository
While Trump stopped short of authorizing the immediate creation of a “strategic national bitcoin reserve,” the order directs a working group to assess its feasibility.
This assessment includes exploring the potential uses of cryptocurrencies legally seized by the federal government, as well as proposing criteria for the management and expansion of such reserves.
The scope of this proposed repository could expand beyond Bitcoin to include other digital assets seized through law enforcement actions.
Ban on Central Bank Digital Currencies (CBDCs)
Trump followed through on his campaign promise to outlaw the creation of CBDCs, which are government-controlled cryptocurrencies.
According to the order, a CBDC is defined as “a form of digital money or monetary value, denominated in a national unit of account, which is a direct liability of the central bank.”
According to Trump’s order, agencies are prohibited from taking any action to establish, issue, or promote a CBDC in the United States or foreign jurisdictions.
They can do so only if they are required to do so by law.
“Except to the extent required by law, any plans or initiatives underway in any agency related to the creation of a CBDC within the jurisdiction of the United States shall be immediately terminated, and any such plans to develop or implement No further action can be taken or initiated,” read the order.
While this prohibition resonates with crypto enthusiasts who are wary of state surveillance, critics like crypto researcher Molly White argue that it is largely symbolic, as no federal agency has seriously pursued a CBDC initiative. Has increased.
Canceling Biden’s 2022 Crypto Executive Order
Trump rescinded an earlier directive from President Joe Biden that focused on studying digital assets and addressing their potential risks.
This signals a shift from Biden’s cautious approach toward crypto and a move toward more industry-friendly policies.
Crypto industry reactions
Bitcoin (BTC) experienced volatility following the announcement, initially rising and then falling, before stabilizing slightly over the 24-hour period.
The mixed market reaction reflects uncertainty about the immediate impact of the order.
Shawn Farrell, head of digital assets at Fundstrat, commented in a Yahoo Finance report that this action was “priced in” by the market.
However, he said Trump’s pro-crypto stance is “huge” for the long-term future of the industry.
Other developments already underway reflect the influence of the administration.
For example, recently the Securities and Exchange Commission (SEC). Repealed Accounting Guidance (SAB 121)Which had stopped banks and broker-dealers from providing crypto custody services.
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