On January 23, 2025, President Donald Trump signed an executive order focused on advancing America's leadership in digital assets and blockchain technology. The order emphasizes regulatory clarity, financial independence, and privacy preservation.
Ban on Central Bank Digital Currencies (CBDCs)
A key aspect of the order is its strong stance against Central Bank Digital Currencies (CBDCs). The order explicitly prohibits any federal action to create or promote a CBDC within the U.S., highlighting the potential risks to individual privacy and national sovereignty. Consequently, agencies are instructed to halt all ongoing CBDC projects.
Creation of a Federal Digital Assets Regulatory Framework
The order also paves the way for the establishment of a federal regulatory framework for digital assets, including stablecoins and other blockchain technologies. A key element is the formation of a working group tasked with evaluating market structure, consumer protection, and risk management in the digital asset space. Additionally, a national digital asset stockpile is being considered, potentially comprising cryptocurrencies seized by federal authorities, like Bitcoin.
Reevaluation of Existing Regulations
In addition to the new framework, the executive order mandates federal agencies to reassess their current regulations regarding digital assets and propose updates within 60 days. This step is crucial for ensuring the U.S. digital economy remains current and legally clear.
Despite many promising measures, the order has disappointed some in the crypto community as it does not specifically establish the anticipated national Bitcoin reserve.
