President Trump issued an executive order last week targeting government regulation of the digital asset industry to support the "responsible growth and use of digital assets." On the campaign trail, Trump promised to make the United States "the crypto capital of the planet," and this order is consistent with the president's pledge to overhaul the United States' crypto policy and move it in a more industry-friendly direction.
The order emphasizes access and use for lawful purposes of open public blockchain networks without persecution or unlawful censorship. This includes the ability to transact, develop and deploy software, participate in mining and validating, and maintain self-custody of digital assets. Fair and open access to banking services, according to the order, must extend to both "law-abiding individuals and private-sector entities alike," effectively protecting banking services for crypto companies.
Key Takeaways
- Revocation of Previous Executive Orders and Treasury Guidance. This order formally rescinds the cryptocurrency-related executive order issued under President Biden, which highlighted concerns surrounding digital assets and called for a comprehensive regulatory approach to digital asset policy. The secretary of the treasury has also been directed to revoke the Treasury's "Framework for International Engagement on Digital Assets," which were intended to address and mitigate systemic risks of digital assets, protect consumers and investors, and mitigate illicit finance and national security risks.
- Establishment of the Working Group on Digital Asset Markets (Working Group). This interagency group is tasked with developing a federal regulatory framework for digital assets, including stablecoins, and evaluating the potential creation of a national digital asset stockpile. The Working Group will be chaired by the special advisor for AI and crypto, David Sacks, and will include the Treasury secretary, chairs of the SEC and Commodity Futures Trading Commission, and other agency heads.
- Opposition to the Central Bank Digital Currencies (CBDC). The order rejects the establishment, issuance, circulation, and use of a CBDC within the United States, citing threats to the stability of the financial system, individual privacy, and U.S. sovereignty. A CBDC is a digital currency issued by a central bank, which acts as the digital form of a country's fiat currency. The Biden administration had previously supported researching potential design and deployment options for a U.S. CBDC.
The order reflects a fundamental change in how the federal government engages with cryptocurrency technology. It prioritizes innovation, regulatory certainty, and strengthening the U.S.'s competitive edge in the sector. It stands in stark contrast to the Biden administration's approach, in both rhetoric and policy direction. However, the true impact will unfold in the coming weeks as agencies adjust their regulatory frameworks in response. Still, this deregulatory stance is likely to attract cryptocurrency-related businesses that have previously avoided the United States or blocked U.S. consumers and investors.
That said, companies operating in this space will continue to face significant regulatory challenges, particularly in areas like money transmission and anti-money laundering compliance. Existing financial laws remain in force, and state-level regulations add another layer of complexity. While the federal shift may ease some barriers, navigating the patchwork of obligations will remain a critical concern for businesses entering or expanding in the U.S. market.