President Donald Trump solidified his pro-crypto stance in an executive order on Thursday, saying that his administration will support the growth and use of digital assets and blockchain technology.
The executive order delivers multiple major wins for crypto by directing the government to develop a clear regulatory framework for the industry and explore the creation of a national digital asset stockpile. The executive order established the so-called President’s Working Group on Digital Assets Markets to be chaired by the Special Advisor for AI and Crypto David Sacks, joined by other top-ranking members of the government including the chairs of the SEC and CFTC.
Jonathan Jachym, Kraken’s global head of policy for crypto exchange Kraken, said in a statement, “We're thrilled to see immediate Executive Order action by President Trump to establish the Presidential Working Group on Digital Asset Markets and address key issues critical to the crypto industry.”
The new group is tasked with evaluating existing crypto legislation and proposing a framework to govern the issuance and operation of digital assets that will “support the responsible growth and use of digital assets…” This marks a total reversal from the Biden administration, which crypto executives say over-regulated the industry through outdated and inapplicable laws.
In another highly-anticipated move, Trump’s executive order directs the group to explore the creation of a national digital asset stockpile, without directly establishing one. The order instructs the group to “propose criteria for establishing such a stockpile, potentially derived from cryptocurrencies lawfully seized by the Federal Government through its law enforcement efforts.” Trump has been a vocal supporter of a federal Bitcoin reserve to hedge against inflation. Proponents of the move say it would legitimize the cryptocurrency as a store of value and drive up its price.
Trump also moved to ban any government agency from establishing a central bank digital currency, or CBDC—a digital form of the U.S. dollar. The Federal Reserve has been considering the creation of a CBDC as a means to support more efficient cross-border payments, which would compete with the industry’s killer app—stablecoins. Trump came out against the creation of a CBDC last year, saying it would give the government “absolute control over your money.”
Additionally, the order repeals an executive order signed by Biden in 2022, which implemented safeguards to protect consumers, investors, and businesses. According to Matthew Sigel, head of digital assets research at asset manager VanEck, that order, in practice, “encouraged every Biden agency to pursue max enforcement [with respect to] digital assets and led to @FDICgov Chokepoint 2.0.”
Crypto bulls have been anticipating this executive order since before Trump was sworn in. The excitement about its eventual arrival helped to push Bitcoin to a new all-time high of $109,000 on Monday. However, investors were disappointed when the new president omitted digital currencies from his inaugural address and did not sign any such order in his first three days.
