U.S. President Donald Trump has signed an executive order establishing a cryptocurrency working group to spearhead regulatory reform and evaluate the creation of a national cryptocurrency stockpile. The move aligns with Trump’s campaign promise to swiftly modernize U.S. crypto policy and position the nation as a global leader in digital asset innovation.
Key Highlights of the Executive Order
The executive order prioritizes the development of a unified regulatory framework for digital assets. Key provisions include:
- Regulatory Overhaul for Cryptocurrencies
- The working group will comprise leaders such as the Treasury Secretary, SEC Chair, and Commodity Futures Trading Commission (CFTC) Chair, tasked with creating a clear regulatory structure for digital assets, including stablecoins.
- The order prohibits the development of central bank digital currencies (CBDCs) in the U.S., avoiding competition with existing cryptocurrencies.
- Protection of Crypto Banking Services
- The order directs regulators to ensure that crypto companies retain access to banking services, countering allegations that U.S. regulators had pressured banks to sever ties with such businesses.
- Rescinding Costly Crypto Custody Guidance
- In a key victory for the crypto industry, the SEC has withdrawn accounting guidance that had made safeguarding third-party crypto assets prohibitively expensive for listed companies.
- Proposal for a National Cryptocurrency Stockpile
- The group will explore the creation of a national digital asset reserve, potentially derived from cryptocurrencies lawfully seized by federal authorities.
Industry and Market Response
The crypto industry has celebrated the executive order as a significant step forward. Anchorage Digital CEO Nathan McCauley described it as a “sea change in U.S. digital asset policy” that promises to provide clarity and consistency.
The move has also generated excitement in the crypto market. Bitcoin hit a record high of $109,071 earlier this week before settling at $103,000 by Thursday evening, reflecting investor optimism about the new administration’s crypto-friendly stance.
Contrasting Regulatory Approaches
Trump’s policies mark a stark departure from the previous administration, which focused on tightening controls to combat fraud and money laundering in the sector. Under President Biden, exchanges such as Coinbase and Binance faced regulatory lawsuits for allegedly violating U.S. laws—allegations they denied.
Strategic Leadership and Next Steps
The working group will be chaired by David Sacks, a venture capitalist and former PayPal executive, who was recently named Trump’s crypto and artificial intelligence czar. Analysts are divided on whether Congress will need to approve the proposed national crypto stockpile, but the U.S. Treasury’s Exchange Stabilization Fund may serve as a viable mechanism for its creation.
Senator Tim Scott, Republican Chair of the Senate Banking Committee, praised the move, stating, “President Trump is delivering on his promises to ensure the United States remains a leader in digital asset innovation.”
As the cryptocurrency working group begins its task, its outcomes could pave the way for the mainstream adoption of digital assets, reshaping the U.S. regulatory landscape and reinforcing the nation’s leadership in blockchain technology.
