On January 23, 2025, President Donald Trump signed an executive order aimed at strengthening America's leadership in digital assets and blockchain technology. The order includes a ban on Central Bank Digital Currencies (CBDCs) and the establishment of a federal regulatory framework for digital assets.
Ban on Central Bank Digital Currencies
One of the key aspects of the order is its firm stance against Central Bank Digital Currencies (CBDCs), which have raised privacy and sovereignty concerns. The order clarifies the definition of CBDCs and requires federal agencies to halt any ongoing CBDC projects.
Creation of a Federal Digital Assets Regulatory Framework
The order paves the way for a federal regulatory framework that covers stablecoins and other blockchain technologies. A presidential working group will be formed to evaluate the market structure and risks in the digital asset space. There is also a plan for a national digital asset stockpile consisting of cryptocurrencies like Bitcoin seized by the government.
Reevaluation of Existing Digital Asset Regulations
In addition to the new framework, the order mandates federal agencies to reevaluate their current digital asset regulations and propose updates within 60 days, ensuring the U.S. digital economy stays current and legally clear.
President Trump's digital asset order is a significant step in developing blockchain technology in the U.S., ensuring regulatory clarity and banning CBDCs. However, some Bitcoin enthusiasts are disappointed by the lack of a specific focus on a strategic Bitcoin reserve.
