US President Donald Trump signed the first pro-crypto Executive Order in American history on Thursday in a landmark move for the cryptocurrency industry.
The order includes a series of sweeping measures designed to “strengthen American leadership in digital financial technology,” marking a major policy shift in the US regulation of digital assets.
Establishes the “Working Group on Digital Asset Markets”
One of the most significant aspects of the order is the creation of the ” President’s Working Group on Digital Asset Markets,” which will be led by David Sacks as a special advisor for AI and Crypto.
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The group will include key financial regulators, such as the Secretary of the Treasury, the Chairman of the Securities and Exchange Commission (SEC), and the Chairman of the Commodity Futures Trading Commission (CFTC).
Within 180 days, the Working Group must report to the President with recommendations on digital asset regulations, including rules for issuing and operating stablecoins, market oversight, consumer protection, and risk management.
US President signs the executive order strengthening American leadership in digital financial technology. Source: WhiteHouse
The move comes shortly after Trump appointed new acting chairs for both the SEC and CFTC, following the resignations of former SEC Chair Gary Gensler and his CFTC counterpart.
The shake-up signals a fresh regulatory approach, potentially opening the door to a more crypto-friendly environment.
A National Crypto Reserve Takes Shape
The Executive Order officially includes the development of a national digital asset stockpile, with oversight from the newly formed working group.
While the specific cryptocurrencies to be included remain undisclosed, recent reports from the New York Post suggest that Trump is considering prioritizing US-founded digital assets such as Solana (SOL), USD Coin (USDC), and Ripple (XRP). Notably absent from the list is Bitcoin, which, despite its prominence, is not a US-founded cryptocurrency.
Prohibits Central Bank Digital Currencies (CBDC)
Another major aspect of the order is the outright ban on the creation of a Central Bank Digital Currency (CBDC). This decision follows years of heated debate, with critics arguing that a CBDC would grant the government excessive financial control and erode personal privacy.
The Federal Reserve had previously maintained that it had made “no decisions on whether to pursue or implement a CBDC.”
However, this Executive Order effectively shuts down any possibility of a US government-issued digital currency for the foreseeable future.
SEC Rescinds SAB 121, A Victory for Crypto Custody
In a swift response to the Executive Order, the SEC officially rescinded Staff Accounting Bulletin 121 (SAB 121), a rule that had been widely criticized by the crypto industry. Originally issued in March 2022, SAB 121 required companies holding crypto assets for customers to recognize those assets as liabilities on their balance sheets—a move that made it difficult for banks to offer crypto custody services.
MicroStrategy’s Michael Saylor has hailed the rescission of SAB 121 as a game-changer, arguing that it clears the way for banks to legally custody Bitcoin and other digital assets. This could significantly boost institutional adoption of cryptocurrency in the U.S.
Senate Banking Digital Assets Subcommittee Formed
In a further boost for the industry, the Senate has announced the formation of the Banking Digital Assets Subcommittee.
Chaired by Senator Cynthia Lummis, a well-known Bitcoin advocate, the subcommittee is expected to play a pivotal role in shaping crypto-related legislation moving forward.
Senator Lummis said SAB 121 hurt banking and slowed crypto innovation, praising its repeal as a win for the SEC’s mission.
Why This Matters
Trump’s Executive Order signals a shift toward clearer crypto regulations, positioning the US as a global leader. For investors and businesses, this could drive broader adoption and innovation in digital assets.
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