On January 23, 2025, President Donald Trump signed an executive order to advance America's leadership in digital assets, with a focus on blockchain technology.
Ban on Central Bank Digital Currencies (CBDCs)
A notable aspect of the order is its stance against Central Bank Digital Currencies (CBDCs). It explicitly prohibits any federal action to create or promote CBDCs within the United States. These digital currencies, issued directly by central banks, raise concerns about privacy infringement and national sovereignty.
Creation of a Federal Digital Assets Regulatory Framework
The executive order also lays the groundwork for a federal regulatory framework for digital assets, including stablecoins and blockchain technologies. A presidential working group will be formed to evaluate market structure, consumer protection, and risk management. The creation of a national digital asset stockpile is also being considered.
Reevaluation of Existing Digital Asset Regulations
The order mandates federal agencies to reevaluate their current digital asset regulations, proposing updates within 60 days. This ensures that the U.S. digital economy remains aligned with technological advancements while maintaining legal clarity.
While the order presents important measures, it falls short of the anticipated strategic national Bitcoin reserve. Despite this, many believe that a reserve backed by seized government Bitcoin could strengthen the U.S.'s global financial position.