Trump Administration Takes Steps to Support Crypto and Digital Assets
Following years of regulatory uncertainty, the crypto and digital asset industry is seeing significant developments under the Trump administration. Two major announcements this week – an Executive Order and the establishment of a new Crypto Task Force by the U.S. Securities and Exchange Commission (SEC) – indicate a proactive and pro-growth approach to the sector, though specific policies are still forthcoming.
Executive Order
Issued on January 23, the Executive Order establishes a Working Group on Digital Asset Markets (Working Group). Chaired by David Sacks, the President’s Special Advisor for AI and Crypto, the Working Group includes officials from various Executive agencies. The group is tasked with a series of internal deadlines and is slated to submit a report to the President within 180 days (by July 22). This report will recommend proposals for regulatory and legislative action to advance the policies outlined in the order. These policies include clearer, “technology-neutral regulations,” and protections for software developers, miners, infrastructure providers, and others. The aim is to foster the industry’s role in innovation and economic development.
The Executive Order also reverses the Biden administration’s 2022 Executive Order on the same topic, which was seen as less favorable to the industry. Additionally, it prohibits Central Bank Digital Currencies (CBDCs), which the previous administration sought to promote.
SEC Crypto Task Force
Meanwhile, the SEC launched a Crypto Task Force on January 21, dedicated to developing a comprehensive and clear regulatory framework for crypto assets. Led by Commissioner Hester Peirce, the task force aims to move away from “regulation-by-enforcement” and towards “clear regulatory lines,” “realistic paths to registration,” and “sensible disclosure frameworks.” Commissioner Peirce has long been regarded as a supporter of the industry and she previewed her vision on Wiley’s CryptoCounsel Podcast shortly after the 2024 election.
Looking Ahead
The Trump administration has confirmed its commitment to a pro-growth approach to the digital asset and blockchain industries, laying out its framework for implementing that approach. Specific policies are expected in the coming months. The actions of the Working Group and the Crypto Task Force will be closely monitored, alongside any other developments from the new administration.
