Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of ethdaily.net’ editorial.
On January 23, 2025, President Trump issued an executive order titled “Strengthening American Leadership in Digital Financial Technology.” The EO supports the responsible growth and use of digital assets, blockchain technology, and related technologies across all sectors of the economy in order to secure America’s position as the world’s leader in the digital asset economy, driving innovation and economic opportunity.
The EO sets out high-level policy objectives:
1. Protecting the lawful use of blockchain networks, participation in mining and validation, and self-custody of digital assets without unlawful censorship.
2. Promoting dollar-backed stablecoins.
3. Prohibiting central bank digital currencies.
4. Ensuring fair and open access to banking services.
To achieve these objectives, the EO establishes a Working Group on Digital Asset Markets, chaired by White House AI & Crypto Czar David Sacks. The Working Group will include top officials such as the Chairman of the Securities and Exchange Commission, the Chairman of the Commodity Futures Trading Commission, the Attorney General, and the Secretary of the Treasury. The Working Group’s responsibilities include identifying regulations, guidance documents, and orders pertaining to the digital asset industry, submitting recommendations for rescission, modification, or regulatory adoption of these items, and ultimately submitting a report to President Trump recommending regulatory and legislative proposals for the issuance and operation of digital assets, including stablecoins.
William Quigley, a cryptocurrency and blockchain investor and co-founder of WAX.io blockchain and Stablecoin Tether (USDT), expressed his excitement about the EO, stating that it intends to make the United States the center of digital financial technology innovation and ensure clear regulatory frameworks, especially regarding stablecoins. Vivek Ramsar, the CEO of etherealize.io, concurs, believing that the EO is a monumental structural change to make the US the capital of crypto and AI.
The executive order also rescinds Executive Order 14067 issued by President Biden on March 9, 2022, which placed high urgency on research and development efforts into the potential design and deployment options of a United States CBDC, as well as the Department of the Treasury’s “Framework for International Engagement on Digital Assets” issued on July 7, 2022.
Rhett Shipp, CEO of Avant, an onchain stablecoin dollar provider, explains that President Trump’s executive order rejecting a U.S. CBDC and supporting stablecoins is a clear signal of where the industry is heading. He believes that stablecoins serve as a more effective alternative, boosting dollar adoption globally while maintaining financial privacy. Supporting stablecoin growth, instead of introducing a government-controlled digital currency, is the right move for financial innovation and the U.S. economy.
Under the Biden administration, the lack of regulatory clarity in the classification of digital assets between a security and a commodity was a major concern for the crypto industry. The Securities and Exchange Commission’s regulation by enforcement practices reached new highs. Recent cases have shown that determining whether a cryptocurrency is a security is a complex task. Judges Amy Berman Jackson and Katherine Polk Failla expressed their concerns during hearings, highlighting the need for clear regulations.
President Trump has selected legislators who understand the industry, including David Sacks, the White House crypto and artificial intelligence czar, Representative French Hill as the chair of the House Financial Services Committee, and Senator Cynthia Lummis as the chair of the Senate Banking Committee’s subcommittee on digital assets. Confidence is growing that digital asset-friendly regulation is on its way with the U.S. Securities and Exchange Commission’s new task force that will develop a regulatory framework for crypto assets in collaboration with the CFTC.
“The Executive Order sets the stage for a lot of activity in the blockchain and crypto world, including from regulators. We are excited to work on the proposals as they take shape,” said Lee A. Schneider, General Counsel, Ava Labs.
Currently, digital assets are regulated in various areas in the US.
(Table omitted)