Trump Signs New Executive Order to Support Crypto and Blockchain Growth
President Trump signs an executive order to promote crypto growth, explore a digital asset reserve, and set clear regulatory guidelines for blockchain innovation.
President Donald Trump has taken a significant step in promoting cryptocurrency and blockchain innovation through a new executive order issued on Thursday. The directive emphasizes fostering the growth of digital assets and setting a structured regulatory framework to support the evolving industry.
Central to this order is the creation of the President’s Working Group on Digital Asset Markets. This group will be led by Special Advisor for AI and Crypto David Sacks, along with prominent government figures, including the heads of the SEC and CFTC. Their mission is to analyze existing cryptocurrency laws and propose updated guidelines that encourage the responsible use and expansion of digital assets.
Jonathan Jachym, who oversees global policy at Kraken, a major cryptocurrency exchange, praised the initiative. "We’re thrilled to see President Trump take swift action to address key challenges facing the crypto space," Jachym said.
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A standout aspect of the executive order is a directive to explore the establishment of a national digital asset reserve. While it doesn’t officially create such a reserve, the working group has been tasked with developing criteria for its potential formation. This reserve could involve cryptocurrencies confiscated through federal law enforcement. Trump has long supported the idea of a Bitcoin reserve to combat inflation, a move that proponents say could validate Bitcoin as a reliable store of value and boost its market price.
Another major highlight is Trump’s decision to ban federal agencies from developing a central bank digital currency (CBDC). He has previously expressed concerns that a CBDC would grant excessive control over individual finances to the government. This decision diverges from the Federal Reserve’s ongoing exploration of CBDCs as a tool for streamlining international payments, which currently rely on private stablecoin technology.
Additionally, the order overturns a 2022 directive from the Biden administration that implemented consumer and investor safeguards for digital assets. Critics argued that the previous order led to overly stringent regulations, hindering innovation. Matthew Sigel, who heads digital asset research at VanEck, described the Biden-era policies as “overzealous enforcement” that stifled progress in the sector.
The anticipation surrounding Trump’s executive order has been building for years, with many in the crypto community eagerly awaiting action. Earlier this week, Bitcoin reached an unprecedented peak of $109,000, fueled partly by speculation about the order’s contents. However, some investors were initially disheartened when Trump made no immediate reference to cryptocurrencies in his inaugural address or in early executive actions.
With this groundbreaking directive, Trump signals a shift in U.S. policy toward embracing cryptocurrency as a crucial element of the nation’s economic strategy. The move is expected to provide a clearer path for digital asset innovation while reinforcing the country’s leadership in blockchain technology.
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