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U.S. President Donald Trump has taken a decisive step in reshaping the nation’s cryptocurrency policies by establishing a new taskforce, “The President’s Working Group on Digital Asset Markets.” The executive order, signed on January 23, 2025, aims to create a regulatory framework for digital assets and signals a significant shift in U.S. crypto policy.
The working group will be led by David Sacks, who has been named the administration’s AI and crypto czar. Members of the working group include the Treasury Secretary and chairpersons of the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) along with other important agency heads. Under the guidance of the National Economic Council the team focuses their work on writing new digital asset laws as well as assessing the feasibility of establishing a centralized cryptocurrency reserve.
Key Provisions of the Executive Order
- Focus on Regulations and Stockpile Creation: The taskforce establishes regulatory guidelines for digital assets along with supervision for creating a national cryptographic currency seize and store system that meets legal standards.
- Banking Protections for Crypto Companies: Through this executive order the banking sector received protection for cryptocurrency operations because it resolved cries from regulators about cutting off industry businesses.
- Rescinded SEC Accounting Guidelines: The SEC reimplemented new regulations that rescinded the requirement for publicly traded firms to calculate crypto digital assets as liabilities. The regulatory change will lower expenses while motivating increased acceptance of digital assets.
- Ban on Central Bank Digital Currencies (CBDCs): Under Trump’s order, the United States cannot build or promote a Central Bank Digital Currency (CBDC) because it competes with decentralized cryptocurrencies like Bitcoin.
A Shift in U.S. Crypto Policy
Trump’s executive order represents a major shift from Biden’s administration by shifting towards promoting digital currency adoption alongside U.S. leadership of cryptocurrency innovation.
“Today’s crypto executive order marks a sea change in U.S. digital asset policy,” said Nathan McCauley, CEO and co-founder of Anchorage Digital. “By taking a whole-of-government approach to crypto, the administration is making a significant first step toward writing clear, consistent rules of the road.”
The announcement has been widely welcomed by the crypto industry, which had voiced concerns over inconsistent regulations and barriers to banking access. Many analysts predict that the task force foundation marks an important milestone to legitimize digital assets and protect them from fraud or misuse.
The White House’s decision to ban the issuance of central bank digital currencies yet facing criticism from experts since these currencies could potentially improve both financial stability and operational effectiveness.
The newly formed task force starts work immediately to produce detailed rules and regulation standards for cryptocurrency. Industry experts believe that these recent measures will provide the necessary structure and assurance to the continuously evolving digital asset environment.
