In a decisive move signaling a transformative shift in U.S. cryptocurrency policy, President Donald Trump signed an executive order on Thursday establishing a cryptocurrency working group. This initiative aims to redefine regulatory approaches, protect banking services for crypto companies, and explore the creation of a national cryptocurrency stockpile.
The sweeping order also prohibits the creation of a U.S. central bank digital currency (CBDC), a decision that aligns with Trump’s pro-crypto campaign promises. Analysts say this action sets the stage for the United States to maintain its edge in the digital asset space while potentially catapulting cryptocurrencies into the financial mainstream.
The executive order marks a stark departure from the policies of the Biden administration, which prioritized stringent regulatory enforcement to combat fraud and money laundering in the crypto space. Under Biden’s leadership, regulatory agencies launched lawsuits against major exchanges, including Coinbase and Binance, accusing them of violating U.S. laws—allegations both companies deny.
By contrast, Trump has positioned himself as a “crypto president,” advocating for the adoption and innovation of digital assets. This pro-crypto stance has resonated with industry stakeholders. Nathan McCauley, CEO and co-founder of Anchorage Digital, described the order as a “sea change in U.S. digital asset policy,” commending the administration’s commitment to crafting clear and consistent regulatory guidelines.
Formation of a Cryptocurrency Working Group
The order establishes a multi-agency task force, including representatives from the Treasury Department, Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and other regulatory bodies. The group is tasked with:
- Developing a comprehensive regulatory framework for cryptocurrencies.
- Addressing the classification of digital tokens as securities, commodities, or other asset categories.
- Evaluating stablecoins and their role in the financial ecosystem.
Creation of a National Cryptocurrency Stockpile
A notable element of the order involves exploring a national digital asset reserve, potentially sourced from cryptocurrencies lawfully seized by federal law enforcement. While details remain unclear, experts suggest this reserve could leverage the U.S. Treasury’s Exchange Stabilization Fund to manage seized digital assets.
Protection of Banking Services for Crypto Companies
Responding to allegations of regulatory hostility towards crypto businesses, the order mandates protections for these companies’ access to banking services. This move is expected to bolster confidence within the industry and encourage broader participation in the U.S. crypto market.
The announcement has been met with enthusiasm across the crypto sector. Bitcoin surged to a record high of $109,071 on Monday, though it dipped slightly to $103,000 by Thursday afternoon. Experts attribute the rally to optimism surrounding the administration’s crypto-friendly stance.
Senator Tim Scott, chair of the Senate Banking Committee, praised the order, emphasizing its potential to solidify the United States’ leadership in digital asset innovation. “Just days into his administration, President Trump is delivering on his promises,” Scott remarked in a statement.