On January 23, 2025, President Donald Trump signed an executive order titled “Strengthening American Leadership in Digital Financial Technology,” marking a pivotal shift in U.S. cryptocurrency policy. The order establishes crypto as a national priority, aiming to foster innovation, promote dollar-backed stablecoins, and ensure regulatory clarity.
It creates the Presidential Working Group on Digital Asset Markets, chaired by David Sacks, Trump’s AI and Crypto Czar, to review existing regulations and propose a comprehensive framework within 180 days. This move contrasts sharply with the Biden administration’s enforcement-heavy approach, signaling a pro-crypto era for the U.S.
The executive order directs federal agencies, including the SEC and CFTC, to identify and potentially rescind regulations that hinder crypto growth within 30 days. It also bans agencies from supporting central bank digital currencies (CBDCs), aligning with Republican concerns about privacy and government overreach.
The Working Group, comprising leaders from the Treasury, Commerce, and other agencies, will evaluate the feasibility of a national crypto asset reserve using seized cryptocurrencies.
This initiative aims to position the U.S. as a global leader in blockchain technology, competing with regions like Europe, where the Markets in Crypto-Assets framework took effect in January 2025.
Trump’s order reflects his campaign promise to make the U.S. the “crypto capital of the planet,” bolstered by over $119 million in industry donations during the 2024 election.
The crypto industry views this as a catalyst for mainstream adoption, particularly for stablecoins, which facilitate cross-border payments and crypto trading. For instance, platforms like Coinbase and Stripe have integrated USDC for instant settlements, reducing reliance on traditional payment rails.
However, the order has sparked controversy. Critics, including Sen. Jeff Merkley, argue it favors Trump’s personal ventures, such as World Liberty Financial and its USD1 stablecoin, which earned him $57 million in 2024.
The White House maintains that Trump’s assets are managed by a trust to avoid conflicts. Meanwhile, industry leaders like Faryar Shirzad of Coinbase emphasize the need for clear regulations to prevent future SEC crackdowns.
The order’s focus on dollar-backed stablecoins could drive demand for Treasury securities, as issuers like Circle hold reserves in cash equivalents, potentially impacting the yield curve.
The Presidential Working Group will collaborate with stakeholders to ensure regulations balance investor protection and innovation.
This includes supporting open blockchain networks and ensuring access to banking services for crypto firms, addressing past issues like Operation Chokepoint 2.0. The order’s impact on tokenized assets, like music or real estate, could lower barriers for fractional ownership, attracting retail investors.
As the U.S. navigates this pro-crypto shift, our website’s Education section offers guides on tokenized assets and regulatory changes to keep users informed. Stay tuned for updates on how this executive order shapes the U.S. crypto industry.
