On January 23, 2025, President Trump issued an executive order titled “Strengthening American Leadership in Digital Financial Technology.” The order establishes new regulatory frameworks for digital assets while emphasising industry growth and innovation across the U.S. economy.
The order explicitly revokes the Biden administration’s Executive Order 14067 and the Treasury Department's Framework for International Engagement on Digital Assets, marking a fundamental shift in approach.
Notably, the revocation extends beyond these primary documents to include all related policies, directives, and guidance issued under either the executive order or Treasury's Framework, to the extent they conflict with the new order. According to the accompanying fact sheet to Trump’s executive order, this revocation addresses policies that had “suppressed innovation and undermined U.S. economic liberty and global leadership in digital finance. “This signals a fundamental shift from a risk-focused assessment approach to one prioritising industry growth and innovation.
The Presidential Working Group
Central to implementing the vision of the executive order is the Presidential Working Group on Digital Asset Markets, established within the National Economic Council and chaired by David Sacks, the special advisor for AI and Crypto. The Working Group brings together key regulatory stakeholders, including the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and various cabinet-level departments.
Notably absent from the Working Group are U.S. banking regulators such as the Federal Reserve System Board of Governors, Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), and National Credit Union Administration (NCUA), which is particularly significant given ongoing concerns about digital asset companies’ access to banking services.
Regulatory Framework Development
The order sets an ambitious timeline for regulatory reform. Within 30 days, agencies constituting the Working Group must identify all regulations, guidance documents, and orders affecting the digital asset sector. Following this initial review, agencies have an additional 30 days to submit recommendations for rescinding or modifying these items, or in some cases, adopting them as formal regulations.
The Working Group must submit a comprehensive report within 180 days recommending regulatory and legislative proposals. This framework must address the issuance and operation of digital assets, including stablecoins, with specific provisions for market structure, oversight, consumer protection, and risk management.
Strategic Digital Asset Reserve
In a notable development, the Working Group is tasked with evaluating the potential creation of a national digital asset stockpile. This initiative builds upon Senator Lummis's 2024 strategic bitcoin reserve legislation though the executive order potentially broadens the scope beyond bitcoin to include other digital assets. The Working Group will propose criteria for establishing such a stockpile, including the possibility of utilising cryptocurrencies seized through federal law enforcement efforts.
Key Policy Positions
The order takes several definitive positions that reshape U.S. digital asset policy. It identifies the promotion of dollar-backed stablecoins as crucial to supporting U.S. dollar sovereignty, though specific regulatory requirements are left to the Working Group's framework development process.
In a clear break from previous policy, the order explicitly prohibits federal agencies from pursuing central bank digital currencies (CBDCs), characterising them as threats to financial system stability, individual privacy, and U.S. sovereignty.
The order also emphasises the importance of fair access to banking services, directly addressing reported challenges digital asset market participants have faced in obtaining banking services for their products and services.
Industry Engagement
The Working Group is directed to maintain open dialogue with the industry through public hearings and consultation with digital asset and market leaders. This collaborative approach emphasises the administration’s commitment to working directly with industry stakeholders in developing new regulatory frameworks.
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