TL;DR

President Trump signs an executive order creating the President’s Working Group on Digital Asset Markets, aiming to promote the U.S. as a global leader in digital assets and financial technology.
The executive order prohibits the establishment of a U.S. CBDC and excludes the Federal Reserve and FDIC from the working group.
The move has been widely approved by the crypto community and industry leaders, expected to drive further innovation and adoption in the digital asset space.

President Donald Trump signed a significant executive order in the Oval Office, marking a pivotal moment for the cryptocurrency industry. The executive order establishes a new working group dedicated to promoting the United States as a global leader in digital assets and financial technology.

This move aligns with Trump’s campaign promises to foster a more crypto-friendly regulatory environment and support the growth of blockchain technology.

Formation of Trump’s Working Group

The executive order creates the President’s Working Group on Digital Asset Markets, which will include top administration officials and financial regulators. The group will be chaired by David Sacks, the White House czar for artificial intelligence (AI) and cryptocurrency.

Key members of the working group include the Treasury Secretary, Attorney General, Securities and Exchange Commission Chair, and Commodity Futures Trading Commission Chair. The group’s primary tasks are to propose a federal regulatory framework for digital assets and explore the potential creation and maintenance of a national digital asset stockpile.

Key Provisions and Exclusions

One of the most notable aspects of the executive order is the prohibition of the establishment, issuance, circulation, and use of a U.S. CBDC. This decision reflects the administration’s stance on maintaining the stability of the financial system and protecting individual privacy and national sovereignty.

The executive order also excludes the Federal Reserve and the Federal Deposit Insurance Corporation from the working group, focusing instead on other key regulatory bodies.

Industry and Lawmaker Reactions

The executive order has been met with widespread approval from the crypto community and industry leaders. SEC Commissioner Hester Peirce, known for her pro-crypto stance, expressed her satisfaction with the move.

The banking sector also welcomed the change, with Paige Pidano Paridon from the Bank Policy Institute highlighting that the decision restores banks’ ability to serve as secure custodians of digital assets.

Future Implications

The establishment of the President’s Working Group on Digital Asset Markets marks a significant victory for the cryptocurrency industry. By reducing regulatory burdens and fostering a more business-friendly environment, the executive order is expected to drive further innovation and adoption in the digital asset space.

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Filed under: News - @ January 24, 2025 1:27 pm