Trump Signs Executive Order to Establish Digital Asset Market Working Group, Prohibiting CBDCs

Trump signed an executive order to establish the President's Digital Asset Market Working Group, tasked with developing a federal regulatory framework for managing digital assets, including stablecoins, and assessing the feasibility of establishing a national digital asset reserve. The working group is chaired by David Sachs, the "AI and Cryptocurrency Czar" from the White House, and includes the Secretary of the Treasury, the Chairman of the Securities and Exchange Commission, and heads of other relevant departments and agencies. The executive order requires departments to submit recommendations to the working group to modify or repeal regulations and other agency actions that impact the digital asset industry. Furthermore, the executive order prohibits agencies from taking any action to establish, issue, or promote Central Bank Digital Currencies (CBDCs). The order also rescinds the previous administration's "Digital Assets Executive Order" and the Treasury's "Framework for International Engagement on Digital Assets," stating that both orders stifled innovation and weakened the economic freedom and global leadership of the United States in the digital finance sector.