On January 23, 2025, President Donald Trump initiated a significant shift in U.S. policy regarding digital assets, fulfilling a campaign pledge to make the nation the “crypto capital of the planet.” This move was embodied in an executive order titled, “Strengthening American Leadership in Digital Financial Technology.” The order has set the stage for a new era of digital asset regulation and development.
The executive order outlines a strategic framework to boost U.S. leadership in digital assets and fintech. Its core policy supports “the responsible growth and use of digital assets, blockchain technology, and related technologies across all sectors of the economy.” The administration’s key objectives include protecting individual access to open public blockchain networks, preserving the dominance of the U.S. dollar through stablecoin support, and overturning what it characterizes as the previous administration’s “debanking” policies.
The aim is to create a regulatory framework that is technology-neutral, transparent, and supportive of a vibrant digital economy. This new approach signals a coordinated effort by major federal agencies and U.S. departments, including the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Treasury, Commerce, and Homeland Security.
A key element established by the order is the President’s Working Group on Digital Asset Markets. This group is charged with developing a federal regulatory framework for digital assets, including stablecoins. The group faces strict deadlines to assess existing regulations within 30 days, propose reforms in 60 days, and submit a report to the President with regulatory and legislative proposals within 180 days.
A notable aspect of this executive order is its clear stance against a central bank digital currency (CBDC). The order immediately halts any ongoing initiatives related to CBDCs. Furthermore, it revokes the Biden administration’s Executive Order 14067 on digital assets, as well as related initiatives like the Treasury Department’s Framework for International Engagement on Digital Assets.
The order also considers the potential creation and maintenance of a national digital asset stockpile. While details remain, the crypto industry may be disappointed, as it had anticipated the announcement of a national Bitcoin reserve. The professional firm, Duane Morris, will monitor developments and provide updates as this order is carried out.
