On Thursday, President Donald Trump signed an executive order aimed at clarifying regulations within the cryptocurrency sector to “secure America’s position as the global leader in the digital asset economy,” according to FOX Business.
The order establishes the Presidential Working Group on Digital Asset Markets, which will work on creating a federal regulatory framework for digital assets like stablecoins and assess the potential creation of a national digital assets stockpile. The group will be chaired by the White House’s AI and crypto czar, and include key figures such as the Treasury Secretary, the SEC Chairman, and other relevant department heads.
Additionally, the executive order bans federal agencies from introducing, issuing, or advocating for central bank digital currencies (CBDCs). It also instructs various federal bodies to provide recommendations on which digital asset regulations should be rescinded or modified. Furthermore, it revokes the digital assets framework for international engagement established by the Biden administration.
The White House statement highlighted that Trump’s move is aimed at turning the U.S. into a hub for digital financial technology by halting aggressive enforcement and regulatory overreach that had hindered innovation during the previous administration.
Trump had previously advocated for a pro-crypto stance during his presidential campaign, pledging to transform the U.S. into the “crypto capital of the planet” and the “bitcoin superpower of the world” if re-elected.
In contrast, the Biden administration, under former SEC Chair Gary Gensler, had conducted a regulatory crackdown on the crypto sector in an effort to eliminate bad actors.
Gensler stepped down from his post on Inauguration Day, and Trump appointed SEC Commissioner Mark Uyeda, a Republican, as acting SEC Chair, pending the confirmation of his permanent nominee, Paul Atkins.
Uyeda’s first move was to form a crypto task force led by GOP Commissioner Hester Peirce, known as “Crypto Mom.” The task force will facilitate dialogue with industry players to promote a more crypto-friendly regulatory environment. It aims to establish clearer regulations, create feasible paths for registration, set up practical disclosure frameworks, and coordinate efforts with other federal agencies, including the Commodity Futures Trading Commission, which is expected to take a more prominent role in crypto oversight.
Ahead of the announcement, bitcoin prices saw a slight increase of 0.35%, reaching $104,043, and have risen by over 8.6% in the past month.
