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Trump Takes Bold Step Toward Crypto Regulation with Executive Order

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The president's directive sets a new tone for U.S. digital assets.


Trump Takes Bold Step Toward Crypto Regulation with Executive Order

President Donald Trump has issued a landmark executive order aimed at redefining the U.S. government’s approach to cryptocurrency. The order, signed Thursday, signals the administration’s intent to establish a pro-crypto regulatory framework, emphasizing innovation and protection for digital asset participants while prohibiting the development of a central bank digital currency (CBDC).


The order has been eagerly awaited by the cryptocurrency industry, which has long sought clarity and support from federal authorities. For years, the U.S. crypto sector has faced regulatory uncertainty and enforcement actions that many saw as stifling innovation. Trump’s move represents a pivotal moment, as his administration seeks to create an environment where crypto businesses can thrive under friendly oversight.


“This is a critical step forward for America’s 21st-century economy,” said Senate Banking Committee Chairman Tim Scott, a Republican from South Carolina. “I look forward to partnering with President Trump and his team to bring clarity, choice, and opportunity to this important sector.”


The executive order establishes a working group, led by venture capitalist and newly appointed crypto czar David Sacks, to chart the administration’s path forward. The group includes key Cabinet officials, the heads of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), and other senior White House figures. Among its responsibilities, the group will identify all existing regulations affecting crypto within 30 days, recommend modifications or repeals within 60 days, and issue a comprehensive report with new proposals within 180 days.


Trump’s order also lays the groundwork for a “national digital asset stockpile,” tasking the working group with evaluating the feasibility of creating and maintaining a reserve of cryptocurrencies. While this does not immediately establish such a reserve, the directive highlights the administration’s interest in leveraging digital assets as part of the country’s broader economic strategy.


In a significant departure from the previous administration’s stance, the executive order explicitly bans federal agencies from pursuing or promoting the development of a U.S. central bank digital currency. “Agencies under this administration are prohibited from undertaking any action to establish, issue, or promote CBDCs within the jurisdiction of the United States or abroad,” the order states. This decision effectively reverses former President Joe Biden’s 2022 executive order, which had called for exploration into a digital dollar.


The executive order also includes provisions to protect individuals engaging with digital assets. It ensures that developers, miners, validators, and others transacting lawfully in crypto are shielded from legal persecution. This element reflects Trump’s broader pro-business philosophy and underscores his administration’s commitment to fostering innovation in the digital asset space.


The cryptocurrency market reacted quickly to the news. Bitcoin briefly surged to $106,000 from $103,000 before retreating to $103,500, down slightly over the past 24 hours. The brief rally highlights the market’s anticipation of regulatory clarity and its potential impact on institutional adoption of digital assets.


Despite the ambitious tone of the executive order, questions remain about its practical implications. Executive orders cannot directly compel independent agencies like the SEC to act, but they do set a clear agenda for the administration’s policy priorities. Republican allies in Congress are likely to align with Trump’s vision, particularly given their ongoing efforts to legislate crypto oversight, including a market-structure and stablecoin bill introduced in the last session.


The move has been praised by industry leaders eager to see the U.S. position itself as a global hub for cryptocurrency innovation. However, some caution that true regulatory clarity will require more than an executive order. Implementing meaningful changes will demand coordinated action from Congress, federal agencies, and potentially the courts.


Behind the scenes, U.S. markets regulators such as the SEC and CFTC had already been preparing for this shift. Trump’s directive provides the political backing they need to revisit longstanding enforcement strategies and move toward a more supportive regulatory environment.


Trump’s executive order marks a new chapter for the U.S. crypto sector, signaling an administration willing to embrace innovation while safeguarding participants and pushing back against CBDC development. Whether this step will lead to lasting change remains to be seen, but it has undeniably energized a sector long yearning for regulatory progress.


photo source / Blockonome

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Blockonome's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.

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