- Key Provisions of the Executive Orderа
- New Executive Order on Cryptocurrencies: Objectives and Goals
- What Else Has Trump Done for the Crypto Market?
On January 23, 2025, U.S. President Donald Trump issued a highly anticipated executive order on cryptocurrencies, directing his administration to develop a favorable policy framework to establish a strong foundation for the industry in the United States. The order also calls for exploring the possibility of creating “reserves of digital assets.” This move marks a significant shift in U.S. policy toward digital assets.
Key Provisions of the Executive Order
- Establishment of a Digital Assets Task Force led by a special advisor on artificial intelligence and cryptocurrencies.
- Development of a federal regulatory framework for digital assets, including stablecoins.
- Assessment of the feasibility of creating a national digital asset reserve.
- Ban on the creation of a Central Bank Digital Currency (CBDC).
- Revocation of previous Biden administration directives related to digital assets.
New Executive Order on Cryptocurrencies: Objectives and Goals
The executive order, issued on Thursday, aims to protect Americans from legal persecution if they develop software, engage in mining, operate as validators, or conduct transactions “for lawful purposes.”
As part of the order, a task force on cryptocurrencies and artificial intelligence was established, chaired by Trump’s newly appointed “crypto minister,” venture capitalist David Sacks. The group includes members of the Cabinet, heads of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), as well as other senior White House officials.
While the order does not explicitly call for the creation of a strategic Bitcoin reserve, it instructs the task force to “assess the feasibility of establishing and maintaining a national digital asset reserve.”
The primary goal of the executive order is to provide regulatory clarity for the digital asset industry and solidify the United States’ position as a global leader in crypto-economics. Trump emphasized the critical role of digital assets in fostering innovation and driving economic growth.
The order outlines specific deadlines for regulatory action:
Within 30 days, the task force must identify all existing regulations related to cryptocurrencies.
Within 60 days, it must recommend modifications or repeals of outdated or restrictive regulations.
Within 180 days, it must deliver a comprehensive report with new policy recommendations.
Additionally, Trump’s executive order explicitly bans the development of a U.S. Central Bank Digital Currency (CBDC) under his administration. It states that all federal agencies under his control are “prohibited from taking any action to create, issue, or promote a CBDC within the United States or abroad.”
The crypto industry has responded positively to the executive order. Following its announcement, Bitcoin surged to an all-time high of $109,350, though it later saw a slight correction.
What Else Has Trump Done for the Crypto Market?
- Appointed a new (interim) SEC Chair. One of the first actions taken by the new SEC leadership was to repeal Staff Accounting Bulletin (SAB) 121, which previously required publicly traded companies holding cryptocurrency for clients to record those assets on their own balance sheets. The crypto industry strongly opposed SAB 121, arguing that it made it more difficult for banks to offer certain crypto services.
- Announced a government restructuring, putting Elon Musk in charge. Trump declared that the existing U.S. Digital Service would be rebranded as the Department of Government Efficiency, with Elon Musk at the helm. Initially, the department’s website featured only the Dogecoin logo, and now several companies are filing to create Dogecoin exchange-traded funds (ETFs).
- Launched his own cryptocurrency—$TRUMP. On its first day of trading, the meme coin reached a market capitalization of $3 billion, reflecting significant enthusiasm for the project. This move underscores Trump’s support for the crypto industry and his efforts to draw more attention to digital assets.
- Pushed Congress toward pro-crypto regulation. Under Trump’s influence, both the Senate and House of Representatives have accelerated efforts to introduce crypto-friendly legislation, marking a shift from government hostility toward a more supportive stance.
Granted clemency to Silk Road founder Ross Ulbricht. Trump pardoned Ross Ulbricht, the creator of Silk Road, stating on Truth Social that he did it “in honor of Ulbricht’s mother and the Libertarian movement that has strongly supported me.” Ulbricht was convicted of conspiracy, drug distribution, and other criminal charges, receiving two life sentences plus 40 years without parole.