President Donald Trump issued an executive order banning so-called central bank digital currencies and establishing an executive group to examine the future of digital assets in the United States.
The 1,300-word executive order said it would “promote United States leadership in digital assets and financial technology while protecting economic liberty.”
First, the order bans central bank digital currencies (CBDCs) on the basis that they “threaten the stability of the financial system, individual privacy, and the sovereignty of the United States.”
It defines a CBDC as a form of digital money or monetary value “that is a direct liability of the central bank.”
“Agencies are hereby prohibited from undertaking any action to establish, issue, or promote CBDCs within the jurisdiction of the United States or abroad,” the order said.
Second, it established a new executive commission called the “President’s Working Group on Digital Asset Markets.”
According to the order, that group would work within the National Economic Council and would be chaired by David Sacks, the White House’s special adviser for artificial intelligence and crypto.
The working group would also include several Cabinet-level members including the secretary of the Treasury and the attorney general.
Financial regulators like the chairman of the U.S. Securities and Exchange Commission and the chairman of the Commodity Futures and Trading Commission would also be asked to sit in the group.
The group, according to the order, is directed to “propose a federal regulatory framework governing the issuance and operation of digital assets, including stablecoins.”
Additionally, it would be asked to “evaluate the potential creation and maintenance of a national digital asset stockpile.”
Third, the executive order repealed existing orders dealing with digital assets issued in 2022 and directed the secretary of the Treasury to “immediately revoke” an existing federal framework for dealing with digital assets.
The order laid out the Trump administration’s view of digital assets and cryptocurrency saying it views the industry as playing a “critical role in innovation and economic development” in the United States.
“It is therefore the policy of my administration to support the responsible growth and use of digital assets, blockchain technology, and related technologies across all sectors of the economy,” the order said.
That, specifically, means promoting and protecting access to “public blockchain networks,” the “development and growth of lawful and legitimate dollar-backed stablecoins,” access to banking services, and “providing regulatory clarity and certainty built on technology-neutral regulations.”
While Trump was dismissive of cryptocurrency in the past, he became an ardent supporter of digital assets during his 2024 campaign for a second term in office.
On Jan. 20, Trump launched his own cryptocurrency branded as $TRUMP. He is also linked to a crypto project known as World Liberty Financial.
