Trump Signs Executive Order for Crypto Working Group, Prohibits CBDCs

Introduction

On January 23, 2025, President Donald Trump signed a groundbreaking executive order aimed at reshaping the United States’ approach to cryptocurrency and digital financial technology. This move establishes a Presidential Working Group on Digital Asset Markets to craft clear regulatory frameworks and evaluate innovative initiatives, such as a national digital asset stockpile. The order also prohibits the development of a U.S. Central Bank Digital Currency (CBDC), signaling a commitment to safeguarding economic liberty and fostering innovation in the crypto sector. This article breaks down the key decisions, their implications for the crypto industry, and how they position the U.S. as a leader in the global digital economy.

Key Highlights

  • Executive Order Signed on Jan. 23, 2025:
    President Donald Trump signed an executive order establishing the Presidential Working Group on Digital Asset Markets to strengthen U.S. leadership in cryptocurrency and digital financial technology.
  • Focus on Federal Regulations and National Crypto Stockpile:
    The working group is tasked with:

    • Developing federal regulatory frameworks for digital assets, including stablecoins.
    • Evaluating the creation of a national crypto stockpile, potentially from lawfully seized cryptocurrencies.
  • Prohibition of Central Bank Digital Currencies (CBDCs):
    The order prohibits the establishment, issuance, circulation, or promotion of CBDCs in the United States. This fulfills Trump’s campaign promise to block government-controlled digital currencies.

Key Details of the Working Group

  • Structure:
    The group will be chaired by the White House AI and Crypto Czar, David Sacks, and include leaders from key agencies like the Treasury, SEC, and others.

    • The Federal Reserve and FDIC are notably excluded from participation, signaling a shift in stablecoin policymaking to the Treasury.
  • Engagement with Experts:
    The group will consult with industry leaders and stakeholders to ensure informed decision-making.

Policy Shifts and Revocations:

  • Repeal of Prior Policies:
    • Rescinds a 2022 executive order by former President Biden, which aimed to regulate digital assets more stringently.
    • Revokes the Treasury’s Framework for International Engagement on Digital Assets, criticized for stifling innovation and economic freedom.
  • New SEC Guidance:
    The Securities and Exchange Commission repealed the controversial Staff Accounting Bulletin 121 (SAB 121), which burdened financial firms holding crypto. A new rule, SAB 122, aims to streamline crypto custody for U.S. banks.

Ending “Debanking” Practices:
The executive order challenges the alleged “Operation Chokepoint 2.0,” which critics claim pressured banks to cut ties with crypto firms. The exclusion of the Fed and FDIC from the working group is seen as a direct response to these practices.

Trump’s Vision for Crypto Leadership:

  • The executive order positions the U.S. as a global leader in digital financial technology.
  • Trump’s administration promises to foster innovation, reduce regulatory overreach, and protect economic liberty.

Implications for the Crypto Industry:

  • Stronger U.S. Crypto Ecosystem:
    Clearer regulations and support for innovation are expected to boost the U.S. as the “crypto capital of the planet.”
  • Market Impact:
    The prohibition of CBDCs ensures the private sector’s continued dominance in digital assets, while regulatory clarity may attract more investment.

Stay tuned as the Presidential Working Group begins its efforts to shape the future of digital finance in the United States.

eToro Disclaimer

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. {etoroCFDrisk}% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

Crypto Investing Risk Warning

Crypto assets are highly volatile. Your capital is at risk.
Don’t invest unless you’re prepared to lose all the money you invest.
This is a high-risk investment, and you should not expect to be protected if something goes wrong.

Read the full disclaimer

Newsletter

Sign up to receive awesome content in your inbox, every day.

I agree that my data is used according to the privacy policy



Author: Vincenzo Stefanini
Founder at Osom One Digital Agency. Personal Finance, Investing, Money and Motivation