President Donald Trump solidified his pro-crypto stance in an executive order on Thursday, saying that his administration will support the growth and use of digital assets and blockchain technology.
The executive order delivers multiple major wins for crypto by directing the government to develop a clear regulatory framework for the industry and explore the creation of a national digital asset stockpile. The executive order established the so-called President’s Working Group on Digital Assets Markets to be chaired by the Special Advisor for Bitcoin reserve to hedge against inflation. Proponents of the move say it would legitimize the cryptocurrency as a store of value and drive up its price.
Trump also moved to ban any government agency from establishing a central bank digital currency, or CBDC—a digital form of the U.S. dollar. The Federal Reserve has been considering the creation of a CBDC as a means to support more efficient cross-border payments, which would compete with the industry’s killer app—stablecoins. Trump came out against the creation of a CBDC last year, saying it would give the government “absolute control over your money.”
Additionally, the order repeals an executive order signed by Biden in 2022, which implemented safeguards to protect consumers, investors, and businesses. According to Matthew Sigel, head of digital assets research at asset manager VanEck, that order, in practice, “encouraged every Biden agency to pursue max enforcement [with respect to] digital assets and led to @FDICgov Chokepoint 2.0.”
Crypto bulls have been anticipating this executive order since before Trump was sworn in. The excitement about its eventual arrival helped to push Bitcoin to a new all-time high of $109,000 on Monday. However, investors were disappointed when the new president omitted digital currencies from his inaugural address and did not sign any such order in his first three days.
