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Lynn Johannson, President of E2 Management Corporation and Catalyst for THE Collaboration
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Trump Signs New Order for Crypto Rules, Bans CBDCs, Eyes Asset Reserve
Crypto Regulation | Jan 23, 2025
Image of the White House Executive Order
Trump Signs Executive Order to Boost Crypto Innovation, Ban CBDCs, and Explore a U.S. Digital Asset Reserve
O January 23, 2025, President Donald Trump made good on his promise to the crypto sector by signing a new executive order titled "Strengthening American Leadership in Digital Financial Technology" aimed at boosting innovation, providing regulatory clarity, banning the establishment of Central Bank Digital Currencies *CBDCs) and protecting financial freedom, and exploring a national digital asset 'stockpile' (read: reserve).
Key Provisions of the Executive Order
- The executive order highlights the importance of blockchain and digital assets in driving U.S. innovation and economic growth, and guarantees protections for individuals and companies to access and use blockchain networks for legal purposes including self custody of digital assets.
- The order restricts any federal agencies from creating or promoting CBDCs, and outlines concerns around privacy, financial stability, and U.S. sovereignty.
- The newly formed Presidential Working Group on Digital Asset Markets to evaluate the potential of creating a national digital asset reserve that could also include cryptocurrencies that were lawfully seized by federal agencies.
- The order ensures that all law abiding individuals and businesses have fair access to banking services to address the long standing concern that regulators are trying to keep crypto out of the banking industry.
- Trump's executive order revokes Biden's previous executive order 14067 on responsible development of digital assets, and Treasury Department frameworks, signalling a significant policy shift.
- The order promotes lawful, U.S. dollar-backed stablecoins to strengthen U.S. dollar sovereignty and support their global growth as a secure digital asset.
New Presidential Working Group on Digital Asset Markets
A key component of the order is the establishment of a Presidential Working Group on Digital Asset Markets which includes leaders from the Treasury, Justice Department, Commerce, and other major federal agencies. Within 180 days, the group will propose a federal framework to regulate digital assets focusing on structure, consumer protection, and risk management.
See: SEC Launches Crypto 2.0 Task Force Led by ‘Crypto Mom’
Note the Presidential Working Group is different than the SEC's Crypto 2.0 task force led by Commissioner Hester Peirce who is tasked with establishing a clear regulatory framework for crypto, addressing issues like market integrity and investor protection within the scope of the SEC.
Industry Reactions
A mix of enthusiasm and skepticism.
Katherine Kirkpatrick Bos, General Counsel at StarkWare told MarketWatch:
“has been a very positive stretch. I honestly don’t even know how to process this much good news for crypto at once.”
David Sacks, Chair of the newly formed Presidential Working Group on Digital Asset Markets said at an industry event:
“The war on crypto is over. This is the beginning of America reclaiming its position as the world’s innovation leader.”
See: U.S. Bets Big On Crypto and What It Means for Canada
Nathan McCauley, CEO and co-founder of crypto company Anchorage Digital on Reuters:
"Today’s crypto executive order marks a sea change in U.S. digital asset policy. By taking a whole-of-government approach to crypto, the Administration is making a significant first step toward writing clear, consistent rules of the road."
Some critics have raised ethical concerns over the launch and promotion of Trump's meme coin $Trump, due to conflicts of interest. They also have questions about the long term implications and market oversight.
Closing Outlook
This executive order positions the U.S. as a serious player in the global crypto space. By banning CBDCs, protecting industry access to banking, and proposing a strategic Bitcoin reserve, President Donald Trump and his administration are making a bold and clear statement about their vision for the future of finance.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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