Trump's crypto order aims for US leadership

President Trump signed an executive order on January 23, 2025, titled “Strengthening American Leadership in Digital Financial Technology,” signaling a shift in U.S. crypto policy.

This order revokes Executive Order 14067 and prior Treasury policies, aiming to support the responsible growth of digital assets and blockchain technology across all sectors.

The policy favors open public blockchain networks and opposes a U.S. central bank digital currency (CBDC).

The executive order establishes the President’s Working Group on Digital Asset Markets, chaired by David Sacks, to develop a federal regulatory framework for crypto assets.

The Working Group has 180 days to recommend regulatory and legislative proposals.

Federal agencies, including the SEC and CFTC, must review previous regulatory guidance that conflicts with this new direction.

The order also tasks the Working Group with evaluating a national crypto asset reserve derived from lawfully seized cryptocurrencies.

Trump's stance marks a change from his earlier criticism of the crypto sector, influenced by substantial financial backing from crypto investors during his campaign.

Nearly half of the corporate donations for the 2024 election cycle came from crypto stakeholders.

The directive emphasises the role of digital assets in fostering innovation and driving economic growth in the U.S.

The order promotes the sovereignty of the U.S. dollar through dollar-backed stablecoins and aims to provide regulatory clarity built on technology-neutral regulations.

Trump declared an end to Biden’s crypto policies, crediting Bitcoin’s (CRYPTO:BTC) surge to his efforts to make the U.S. the global hub for digital assets.

"Bitcoin set multiple all-time highs because everyone knows I’m committed to making America the crypto capital," Trump stated at the Future Investment Initiative Institute conference in Miami.

The SEC also rescinded Staff Accounting Bulletin No. 122 (SAB 122), which is expected to allow banks to interact more freely with the crypto sector.

Trump's administration is considering a Strategic Bitcoin Reserve (SBR) to serve as a financial safeguard and bolster the U.S. dollar.

Trump's personal involvement includes launching the TRUMP (CRYPTO:TRUMP) meme coin, which reached billions in market capitalisation, and his family's DeFi company, World Liberty Financial (CRYPTO:WLFI), holds over $348 million in various cryptocurrencies.