24-1-2025 (WASHINGTON) President Donald Trump has issued a groundbreaking executive order aimed at establishing a crypto-friendly regulatory environment in the United States, marking a significant departure from previous administrations’ approaches to digital assets.
The executive order, unveiled on Thursday, sets forth a comprehensive framework that could reshape the American cryptocurrency landscape, including exploring the possibility of creating a national digital asset reserve whilst explicitly ruling out any development of a central bank digital currency (CBDC).
The directive appointed venture capitalist David Sacks as Trump’s cryptocurrency and artificial intelligence czar, placing him at the helm of a newly formed working group comprising Cabinet officials, regulatory chiefs from the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), alongside key White House personnel.
Markets responded swiftly to the announcement, with Bitcoin briefly touching $106,000 before settling around $103,000, reflecting a marginal decline of 0.51% over 24 hours.
In a significant shift from previous policy, the order provides explicit protections for individuals engaged in legitimate cryptocurrency activities, including miners, validators, and software developers. The measure effectively shields these participants from legal persecution, provided their activities serve lawful purposes.
The working group faces tight deadlines, with 30 days to catalogue existing crypto regulations, 60 days to propose modifications, and 180 days to deliver comprehensive policy recommendations. Notably, the order explicitly revokes former President Biden’s 2022 cryptocurrency directive and instructs the Treasury Department to dismantle the associated digital asset framework.
Senate Banking Committee Chairman Tim Scott (R-S.C.) welcomed the move, stating, “I look forward to partnering with President Trump and his team to bring clarity, choice, and opportunity to this important sector of our 21st century economy.”
While executive orders cannot directly bind Congress or independent regulatory bodies like the SEC, the directive is expected to influence Republican allies within these institutions. The Republican-controlled Congress maintains its own cryptocurrency oversight agenda, including pending market structure and stablecoin legislation, though it remains unclear how Trump’s initiative might affect these parallel efforts.
