On January 23, 2025, President Donald Trump signed a new executive order (Strengthening American Leadership in Digital Financial Technology) signaling a fundamental shift in U.S. policy towards cryptocurrency. Revoking President Biden’s prior executive order on digital assets (E.O. 14067, Ensuring Responsible Development of Digital Assets), the new executive order recognizes the rights of individuals and entities to use digital assets and ultimately aims to promote such use by “providing regulatory clarity and certainty built on technology-neutral regulations.” To accomplish this goal, the order establishes a new working group on digital asset markets to develop a regulatory framework for such assets, requiring the group to report to the President recommending regulatory and legislative proposals that advance these policies within 180 days of the order. The order further prohibits federal agencies from developing or using central bank digital currencies.
Takeaway
This executive order represents a major policy reversal by the U.S. government towards digital assets that has been well-received by the industry. Distancing itself from the prior administration’s attitude towards digital assets, this order signifies the new administration’s goal to cultivate a more crypto-friendly business environment. Although the order itself does not result in any immediate material changes to U.S. policy, it will likely prompt an increase in policy activity and administrative action related to digital assets moving forward.
