Trump Signs Executive Order on Digital Assets

On Thursday, President Donald Trump signed executive orders concerning digital assets, with the goal of enhancing the United States' role in the cryptocurrency sector. This move also seeks to impede the advancement of central bank digital currencies (CBDCs).

The executive order creates a new Presidential Working Group on Digital Asset Markets, which is to be chaired by the White House's ‘AI & Crypto Czar’, David Sacks. This group will consist of important officials, including the Secretary of the Treasury and the Chairman of the Securities and Exchange Commission.

The primary duty of this group will be to establish a federal regulatory framework that pertains to digital assets and stablecoins. Moreover, the order significantly includes a directive to consider the formation of a "strategic national digital assets stockpile." The Working Group is tasked with developing criteria for this stockpile, which may involve cryptocurrencies seized legally by the Federal Government during law enforcement activities.

The executive order places a strong emphasis on reevaluating current regulations. Within a 60-day period, relevant regulatory agencies must provide suggestions to the Chair regarding whether certain regulations, guidelines, orders, or other elements that influence the digital asset sector should be annulled, altered, or integrated into formal regulations.

A crucial change from previous administrations is the order's specific instruction prohibiting agencies from initiating, promoting, or implementing CBDCs within the U.S. or globally. Additionally, it requires the prompt cessation of any ongoing projects or efforts related to the establishment of CBDCs.

Furthermore, the order revokes Executive Order 14067, which was issued on March 9, 2022, and instructs the Secretary of the Treasury to cancel the Department’s “Framework for International Engagement on Digital Assets” from July 7, 2022. Trump's administration describes this action as necessary to reverse policies that have stifled innovation and compromised the United States' economic freedom and global dominance in digital finance.

As a side note, current market conditions indicate that Bitcoin (BTC/USD) has experienced a slight decrease of 0.9%, trading near $102,900, while Ethereum (ETH/USD) has risen by 1.1% in the same period, currently valued around $3,240.

Trump, Crypto, Regulation