The executive order, titled “Strengthening American Leadership in Digital Financial Technology,” also establishes a presidential working group to draft a regulatory framework for digital assets like cryptocurrencies and stablecoins.
Former President Donald Trump signed an executive order on March 10 to establish a presidential working group that will draft a regulatory framework for digital assets like cryptocurrencies and stablecoins. The order also bans the Federal Reserve from issuing a central bank digital currency (CBDC).
The working group will be chaired by David Sacks, who Trump has dubbed his “AI and crypto czar.” It will include the treasury secretary, attorney general, and chairs of the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC).
Its mandate includes evaluating the creation of a national digital assets stockpile and addressing market oversight, consumer protection, and risk management for digital assets.
The stockpile is expected to include Bitcoin, with the U.S. government already holding over 198,000 Bitcoin valued at more than $20 billion from enforcement actions.
At the Bitcoin 2024 Conference, Trump pledged to establish a strategic Bitcoin reserve, repurposing seized assets for national use. This aligns with a proposal by Senator Cynthia Lummis, who introduced a bill to acquire 200,000 Bitcoin annually over five years to build a million-Bitcoin reserve. However, Lummis’s legislation must pass Congress before reaching Trump’s desk.
The order also revokes a 2022 executive action by former President Joe Biden, which called for a framework to explore digital asset regulation, including the potential development of CBDCs.
Trump’s ban fulfills his campaign promises to the cryptocurrency industry, where he vowed to oppose CBDCs and support Bitcoin. He also recently granted a full pardon to Silk Road founder Ross Ulbricht, another commitment from his campaign.
During a televised announcement, Trump reiterated his stance on making the U.S. a global leader in digital financial innovation. He also hinted at other crypto-related initiatives, such as ensuring Bitcoin is “Made in the USA,” though no further details have been provided on this promise.
While the executive order takes a firm stance on digital currencies, it raises questions about the president's authority to enact such sweeping measures. Courts have previously challenged Trump’s executive actions, such as his attempt to revoke birthright citizenship. As the working group begins its task and legislative discussions progress, the long-term impact of this policy remains to be seen.
