Trump Signs Executive Order Focused on Cryptocurrency and Digital Assets

US President Donald Trump has signed a new executive order focused on cryptocurrency and digital assets. The order aims to resolve some challenges

US President Donald Trump has signed a new executive order on cryptocurrency and digital assets. The order aims to address some of the challenges faced by Web3 companies and provide clearer regulations for the industry. A key part of the order is the creation of a working group on digital assets. This group will promote US leadership in cryptocurrency and explore setting up a national stockpile of digital assets. However, the order notably excludes the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) from this working group.

This decision has drawn attention as both agencies have been involved in regulating the crypto industry. Critics, such as Caitlin Long, CEO of Custodia Bank, have accused the agencies of making it difficult for crypto companies to access banking services. In a post on X, Long stated, “Trump’s crypto executive order excludes the Fed & FDIC from the digital asset working group. Both tried to kill the industry through debanking.”

During the Biden administration, several crypto firms faced banking challenges, with some insiders claiming it was part of a coordinated effort called “Operation Chokepoint 2.0.” This alleged operation involved pressuring banks to cut ties with crypto companies.

Over 30 crypto and tech founders reportedly lost access to banking services during this time. The situation worsened in 2023 with the collapse of several crypto-friendly banks. For example, New York-based Signature Bank, known for its crypto clients, was shut down by state regulators in 2023. The Federal Reserve announced that the FDIC had taken receivership of the bank to protect depositors. As of December 31, 022, Signature Bank had $110.36 billion in total assets and $88.59 billion in total deposits.

Another crypto-friendly bank, California-based Silvergate Bank, voluntarily announced its liquidation and the end of operations in 2023. The bank faced a sharp decline in its stock price and financial struggles after major crypto firms severed ties with it.

The executive order also impacts stablecoin regulations. Caitlin Long noted that the Federal Reserve will no longer play a role in shaping stablecoin policies. Instead, Treasury Secretary Scott Bessent, a hedge fund manager and Trump's pick for the role, will oversee this area.

In a separate but related development, the Securities and Exchange Commission (SEC) has rescinded a controversial rule called Staff Accounting Bulletin 121 (SAB 121). This rule required banks holding crypto for customers to record the assets as liabilities. The new rule, SAB 122, makes it easier for US banks to offer crypto custody services, a move that industry leaders see as positive for the crypto space.