President Donald Trump has signed a major executive order to establish a new working group focused on digital assets in the US.
This group, called the Presidential Working Group on Digital Asset Markets, is tasked with shaping the future of cryptocurrency regulation in the United States.
The executive order also explores the idea of creating a national digital asset stockpile to secure the country’s position in the global digital economy.
President Trump announced the order during a televised event, where he appeared alongside David Sacks, the White House’s AI and crypto advisor.
Sacks will lead the working group, and he spoke about its mission: “We’re going to be forming an internal working group to make America the world capital under your leadership”.
The executive order stresses the importance of digital assets in driving innovation and economic growth. It states: “The digital asset industry plays a crucial role in innovation and economic development in the United States, as well as our Nation’s international leadership”.
The working group will consist of high-ranking officials, including the Treasury Secretary, the Attorney General, and the heads of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Together, they will create policies to support cryptocurrency, including ensuring regulatory clarity and promoting the development of stablecoins backed by the US dollar.
One of the group’s top priorities is to protect the US dollar by fostering innovation in lawful, dollar-backed stablecoins while prohibiting the creation or use of central bank digital currencies (CBDCs) in the United States.
Trump’s choice for Treasury Secretary, Scott Bessent, has been a vocal critic of CBDCs. “A CBDC is for countries that have no other investment alternatives. There’s no reason for the United States to have one”, he said.
The focus on private-sector innovation and a clear regulatory framework reflects the administration’s vision of encouraging growth in the digital asset sector while maintaining the supremacy of the US financial system.
By excluding CBDCs from development, the administration believes it can avoid challenges posed by government-controlled digital currencies in other countries.
Exploring a national digital asset stockpile
A significant part of the executive order is the proposal to assess the creation of a national digital asset stockpile. This stockpile could be funded using cryptocurrencies seized during federal law enforcement operations.
Reports indicate that the US government currently holds about $21 billion worth of seized digital assets, including over 198,000 Bitcoin ($BTC).
The concept of a national digital asset stockpile aims to strengthen financial resilience and provide a safeguard during economic uncertainties. By repurposing assets seized during law enforcement efforts, the stockpile could also serve as a symbol of technological leadership.
During his campaign, Trump had promised to establish a strategic Bitcoin reserve. However, the executive order does not explicitly commit to this plan.
David Sacks commented on the issue, saying: “Yeah, we’re going to evaluate that. We have not decided to do it yet. We need to study that”.
The idea of a Bitcoin reserve has sparked debate within the cryptocurrency community. Some supporters argue that Bitcoin’s position as the leading cryptocurrency makes it an ideal candidate for the stockpile.
Others believe that diversifying the stockpile with a mix of digital assets would provide greater flexibility and resilience.
The executive order does not detail how the stockpile would be managed or what specific assets it would include. These questions will likely be addressed by the working group as it consults with industry experts and analyses the potential benefits and challenges of such an initiative.
Reshaping crypto regulations
Another key part of the executive order is its focus on reviewing and revising existing cryptocurrency regulations. It directs federal agencies and departments to identify rules that may need updating or repealing.
This includes reversing some policies from the Biden administration, such as the Digital Assets Executive Order and the Treasury’s international engagement framework.
According to Trump’s administration, these policies have hindered innovation and the United States’ leadership in the digital economy.
The new executive order excludes the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) from participating in the working group.
Instead, it focuses on other major financial regulators like the SEC and the CFTC. This decision has been welcomed by crypto advocates, including SEC Commissioner Hester Peirce, who said: “This is a much-needed step towards providing clarity and fostering growth in the digital asset space”.
The banking sector has also expressed support. Paige Pidano Paridon from the Bank Policy Institute stated: “This is a positive development that reinforces the role of traditional financial institutions in the evolving digital economy”. She added that the order restores banks’ ability to securely manage digital assets.
The executive order also includes directives for federal agencies to consult industry experts and propose modifications to existing regulations. This collaborative approach aims to strike a balance between innovation and consumer protection.
By engaging with stakeholders, the administration hopes to build a regulatory framework that supports the growth of the digital asset industry without stifling its potential.
Despite the ambitious goals outlined in the order, some critics have raised concerns about its implementation. The lack of immediate action on certain promises, such as the creation of a Bitcoin reserve, has left some in the crypto community sceptical.
Additionally, the prohibition of CBDCs has sparked debate over the president’s authority to make such decisions unilaterally. Legal experts have pointed out that executive orders are subject to judicial review and may face challenges if they overstep constitutional boundaries.
Implications for the future
President Trump’s executive order represents a bold step towards positioning the United States as a global leader in the digital asset space.
By forming the Presidential Working Group on Digital Asset Markets, the administration aims to foster innovation, provide regulatory clarity, and ensure that the US remains competitive in the evolving digital economy.
The proposal to explore a national digital asset stockpile further highlights the administration’s commitment to leveraging technological advancements for national benefit.
However, the road ahead is not without challenges. The working group must navigate complex issues, including determining the structure and purpose of the digital asset stockpile, addressing regulatory gaps, and balancing innovation with security and consumer protection.
As the group begins its work, it will need to collaborate closely with industry experts, policymakers, and stakeholders to develop a comprehensive strategy.
The executive order has already received widespread support from industry leaders, financial institutions, and policymakers. SEC Commissioner Hester Peirce’s endorsement underscores the importance of creating a supportive regulatory environment for digital assets.
Similarly, the banking sector’s positive response highlights the potential for collaboration between traditional financial institutions and the digital economy.
In the coming months, the working group’s findings and recommendations will play a critical role in shaping the future of cryptocurrency in the United States.
Whether it’s the establishment of a national digital asset stockpile or the revision of existing regulations, the group’s efforts could have far-reaching implications for the global crypto market.
