Trump Signs Executive Order to Establish US Leadership in Digital Assets, Bans CBDCs

Just days into his second term, President Donald Trump has signed an executive order aimed at cementing the United States as a global leader in cryptocurrency and blockchain innovation. The order, signed on January 23, 2025, outlines a roadmap for a federal regulatory framework for digital assets while banning the development of Central Bank Digital Currencies (CBDCs) within the US.

A Vision for Digital Asset Leadership

The executive order highlights the digital asset industry’s critical role in economic development and global innovation.

“The digital asset industry plays a crucial role in innovation and economic development in the United States, as well as our Nation’s international leadership,” the document reads.

To achieve this vision, the newly formed Presidential Working Group on Digital Asset Markets has been tasked with creating comprehensive regulations for digital assets, including stablecoins. The administration also proposed the development of a “strategic national digital assets stockpile,” with speculation that it could lead to a Bitcoin reserve for the US.

Strategic Bitcoin Reserve Initiative

During the Bitcoin 2024 conference in Nashville, Trump outlined plans to create a US Bitcoin reserve, initially comprising 210,000 BTC managed by the Department of Justice. The reserve would mark a bold move toward integrating Bitcoin into national economic strategy.

Ban on CBDCs

The executive order explicitly prohibits the creation of Central Bank Digital Currencies, stating:
“Any ongoing plans or initiatives at any agency related to the creation of a CBDC within the jurisdiction of the United States shall be immediately terminated, and no further actions may be taken to develop or implement such plans or initiatives.”

Trump has consistently criticized CBDCs, arguing they grant governments “absolute control over your money.” This aligns with his 2024 campaign pledge to oppose CBDCs as part of his financial policy agenda.

Crypto-Friendly Initiatives

The Trump administration has swiftly moved to support the cryptocurrency community:

• Regulatory Streamlining: On January 21, 2025, a task force was launched to reduce barriers to crypto innovation.
• Pardoning Ross Ulbricht: Trump issued an unconditional pardon to Ross Ulbricht, the founder of Silk Road, who had been serving a life sentence.
• Launch of Meme Coin: Trump launched his own cryptocurrency, TRUMP, on January 17, 2025, which quickly gained traction in trading markets.

SEC’s Crypto Task Force

The Securities and Exchange Commission (SEC) has also taken steps to align with the administration’s priorities by establishing a crypto task force under Acting Chair Mark Uyeda. The team will focus on crafting clear and comprehensive regulations for digital assets.

Looking Ahead

The executive order underscores a new era of federal support for cryptocurrencies, prioritizing innovation while addressing regulatory uncertainty. As the US positions itself as a crypto-friendly powerhouse, these policies could reshape the digital asset landscape globally.