An executive order signed by President Donald Trump aims to change how the US regulates cryptocurrencies. The directive marks a significant shift from the Biden administration’s policy and includes proposals for a national digital asset stockpile and a comprehensive regulatory framework.
In addition to outlawing central bank digital currencies (CBDCs), the crypto-friendly ruling pledges to foster digital assets while resolving regulatory issues. According to experts, this action might signal a shift in the general acceptance of cryptocurrencies.
Trump’s Pro-crypto Stance Takes Centre Stage
A government-wide plan to support the expansion of digital assets and blockchain technology is laid out in President Trump‘s executive order. The establishment of a Presidential Working Group on Digital Assets Markets, led by bitcoin supporter and venture entrepreneur David Sacks, is a key component of the directive. One of the group’s goals is to assess the laws that are in place and suggest a thorough regulatory framework for the management of digital assets.
The order has drawn significant praise from the cryptocurrency industry, which has long sought clearer guidelines. According to Jonathan Jachym, Kraken’s global head of policy, the directive represents a significant step forward for the sector. “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.” he stated.
Trump’s hostility to government-controlled digital currencies has been cemented when he forbade the creation of a CBDC, a digital version of the US dollar. Proponents of this prohibition contend that CBDCs may centralize financial authority and hinder competition with private cryptocurrencies. Trump’s position, which emphasizes the need for a decentralized, private-sector-driven financial system, is in line with industry preferences.
National Digital Asset Stockpile Raises Eyebrows
Another pivotal element of the executive order is the proposal to create a national digital asset stockpile. While the directive stops short of establishing such a reserve, it instructs the working group to propose criteria for its creation. The stockpile would potentially be sourced from cryptocurrencies seized by law enforcement and could serve as a strategic asset for the US government.
Proponents of this idea suggest it could help hedge against inflation and elevate Bitcoin and other cryptocurrencies as legitimate stores of value. However, critics argue the absence of operational details raises questions about its feasibility. Some legal experts believe congressional approval may be necessary to implement such a reserve, adding complexity to the plan.
The executive order also repeals a 2022 directive issued by the Biden administration, which had introduced stricter oversight measures aimed at consumer protection. By contrast, Trump’s approach promises “fair and open access to banking services” for crypto companies—a move that has been welcomed by the industry as a pathway to mainstream adoption.
