Trump Signs Executive Order on Cryptocurrency Regulation and Central Bank Digital Currencies
President Donald Trump has issued an executive order addressing two key issues within the cryptocurrency industry. The order establishes a presidential working group tasked with coordinating the development of comprehensive regulations for digital assets and prohibits the creation of central bank digital currencies (CBDCs).
National Digital Asset Stockpile Evaluation
While the order does not mandate the immediate creation of a "strategic national bitcoin stockpile," as Trump previously promised during his 2024 campaign, it directs the working group to assess the feasibility and potential benefits of establishing such a stockpile. The group will also propose criteria for determining which cryptocurrencies may be included in the stockpile, potentially expanding its scope beyond just bitcoin.
Regulatory Framework Development
The working group, chaired by White House AI and crypto czar David Sacks, will be responsible for developing a comprehensive federal regulatory framework for cryptocurrency markets. Within 30 days, the group will identify all existing regulations, guidance documents, and orders related to crypto within various government agencies. Recommendations on each of these items will be submitted within 60 days.
Additional Positive Developments
The Trump administration's positive stance towards crypto has also led to other regulatory developments. Recent actions include:
* The Securities and Exchange Commission (SEC) rescinding accounting guidance that hindered banks and broker-dealers from holding crypto for clients.
* Coinbase CEO's proposal for the creation of a strategic bitcoin reserve, arguing that governments holding gold should also hold bitcoin.
Industry Reaction
The executive order has been met with mixed reactions within the crypto industry. Some market participants were hoping for more concrete actions, while others view the president's pro-crypto stance as a significant positive for the industry's future.