U.S. President Donald Trump’s administration is setting the stage for a significant expansion of the cryptocurrency and artificial intelligence sectors within the United States. A recent executive order and the formation of a new congressional committee are driving this acceleration.
On January 23, 2025, Trump signed the ‘Strengthening American Leadership In Digital Financial Technology’ Executive Order (EO). This pivotal action, coupled with the announcement of the Stargate Initiative, a $500 billion private sector deal to expand American AI infrastructure, showcases the administration’s commitment to these burgeoning technologies.
This new administration sets the “tone at the top” to drive the crypto and AI industries by supercharging the investment, confidence, and adoption of these fledgling technologies with the goal of supporting U.S.-led innovation and growth. The U.S. boasts significant talent and capital in this sector, which are essential drivers of innovation, but requires balanced policy and regulatory clarity.
Regulatory Clarity and the Digital Financial Landscape
The EO signals the establishment of a structured digital finance landscape, opening the door for digital assets to play a critical and legitimate role in the American economy. The EO bans Central Bank Digital Currencies (CBDCs), withdrawing support for government-backed digital dollars in favor of private sector stablecoins to bolster the dollar’s global dominance through the use of U.S. dollar-backed stablecoins.
Further solidifying this commitment, a bicameral crypto committee is being formed, comprising members from the Senate Banking Committee, Senate Agriculture Committee, House Agriculture Committee, and House Financial Services Committee. Their primary task will be to craft a stablecoin bill and establish a comprehensive federal regulatory framework for digital assets.
David Sacks, Trump’s newly appointed crypto and AI czar, is proving to be an invaluable advisor to the administration.
Abdul Rafay Gadit, Co-Founder of Zignaly, explained the anticipated impact: “Trump’s clear dictums will catalyze crypto adoption rates as big investors, financial institutions, and retailers actively start investing in crypto. We’ve seen how, soon after the executive order, $1.19 billion flowed into crypto ETPs, taking the total assets under management to $171 billion, with Bitcoin ETPs making 82 percent of the total value. This marks the beginning of a golden age of the American economy fueled by crypto assets.”
The Securities and Exchange Commission (SEC) is equally active, with Acting Chairman Mark T. Uyeda rescinding Staff Accounting Bulletin (SAB) 121. This rule previously required financial institutions to list crypto assets held on behalf of customers as liabilities. The new approach, SAB 122, seeks to remove entry barriers for traditional banks to offer crypto custodial services without complex account books.
Uyeda has also launched a crypto task force dedicated to developing a comprehensive and clear regulatory framework for crypto assets. Commissioner Hester Peirce, known as “Crypto Mom,” will lead the task force, focusing on regulatory clarity regarding digital assets and securities regulations.
The Commodity Futures Trading Commission (CFTC), under Acting Chairman Caroline D. Pham, is initiating a series of public roundtables on evolving market trends including digital assets. This proactive regulatory engagement, often requested by industry, marks a notable shift from past administrations.
Rob Behnke, the Co-founder, executive chairman, and president of Halborn, noted the dramatic shift: “I feel like the entire industry is experiencing a state of vertigo because of how quickly and drastically things changed. We’ve gone from Operation ChokePoint 2.0, which debanked most US technology innovators in this industry, to complete and total support. The real, proper use cases in the industry are, of course, bitcoin first and foremost, followed by stablecoins, UX, and tokenization of assets. Trump is accelerating everything right now by years.”
The SEC is also scaling back its crypto regulation by enforcement strategy, which the industry sees as a positive development, paving the way for further investment in both technology companies and digital assets.
Strengthening the Dollar and Powering Growth
Trump’s EO aims to fortify the U.S. dollar and, by extension, the American economy. Beyond the ban on CBDCs and the emphasis on USD-backed stablecoins, Bitcoin is anticipated to play a strategic role.
While the EO didn’t include the formation of a strategic bitcoin reserve, the President has tasked the Treasury and Commerce Departments with establishing a sovereign wealth fund via a separate order. This wealth fund may potentially invest in and accumulate digital assets like Bitcoin.
Philip, chief marketing officer of Strategic Bitcoin Reserve Coin ($SBR) on Ethereum, said, “The Executive Order is a massive step towards achieving the goal of Congressional approval for Senator Lummins’ Strategic Bitcoin Reserve (SBR) bill. While some might view the Executive Order as a blow to the SBR movement, it’s quite the opposite. Executive orders oftentimes have a shelf life that lasts as long as the current administration term. However, Congressional approval for a bill like Senator Lummins’ SBR would establish a long-term plan rooted in the government’s belief in bitcoin’s ability to reduce the deficit, hedge against inflation, and possibly shore up the dollar.”
The AI Infrastructure Boom
Following the signing of the EO, Trump addressed the World Economic Forum virtually, reiterating his commitment to making America “the world capital of artificial intelligence and crypto.” The simultaneous launch of the Stargate Initiative to build AI infrastructure highlights this pledge.
Michael O’Rourke, co-founder of Pocket Network, emphasized Trump’s commitment: “The data centers that power AI training and deployment require enormous energy and put pressure on the national power grids. With the rise of AI models, the energy demand will grow significantly as Goldman Sachs predicts a 160 percent rise in power demand. By deregulating the energy sector, Trump is set to make America an AI hub”.
The Stargate Initiative’s first phase involves a $100 billion investment in data center construction in Abilene, Texas, with plans for 20 additional facilities. This project is expected to generate jobs in both the technology and energy infrastructure sectors.
Tiger Li, vice president of AI Ecosystem at AI DePIN Phoenix noted, “Despite already being the de facto AI leader of the world, it definitely makes sense for the Trump administration to further push for absolute AI sovereignty without any dependency on foreign supply chains. Leveraging America’s huge energy reserves also gives a substantial edge to dominate the AI space in the foreseeable future. The focus on infrastructure is crucial for the purposes of bolstering the entire country, from the economy to national security.”
The administration’s policies promise to foster innovation. The industry anticipates U.S. stablecoin legislation within the next 100 days and the rest of the world is watching.
