<p>Today, U.S. President Trump officially signed the executive order titled "Strengthening America's Leadership in Digital Financial Technologies." This executive action not only signifies the U.S. government's emphasis on the digital asset industry but also provides a clear policy framework for its future development. The core content of the order includes protecting crypto rights, prohibiting CBDCs, safeguarding dollar sovereignty, supporting dollar-backed stablecoins, and introducing a new regulatory framework in 180 days. All agencies must review existing rules impacting the digital asset industry within 30 days and submit recommendations on whether to repeal or modify existing regulations or guidance within 60 days. The executive order also establishes a Presidential Working Group on Digital Asset Markets, composed of heads from various departments, to coordinate actions across the agencies. The order explicitly prohibits Central Bank Digital Currencies (CBDCs) and mandates the termination of any related plans. This move will provide a more stable development environment for the digital asset industry and could reinforce the dollar's dominant position in the international financial system. Trump's crypto executive order is viewed as the formal beginning of a crypto renaissance, injecting new vitality and momentum into the global digital financial market.</p>

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                        Trump Signs First Crypto Executive Order, Officially Launching the Crypto Renaissance.
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<p><span>Written by: KarenZ, Foresight News</span></p>
<p>Today, U.S. President Trump officially signed the <a href="https://www.whitehouse.gov/presidential-actions/2025/01/strengthening-american-leadership-in-digital-financial-technology/" target="_blank">Executive Order on Strengthening American Leadership in Digital Financial Technology</a>. This executive action not only signifies the U.S. government's emphasis on the digital asset industry but also provides a clear policy framework for its future development. What are the key points of this executive order? What are its potential impacts?</p>
<h2>TL; DR</h2>
<p>1. Protecting crypto rights (development and deployment of related software, self-custody, trading, mining);</p>
<p>2. Prohibiting CBDCs;</p>
<p>3. Protecting dollar sovereignty and supporting dollar-backed stablecoins;</p>
<p>4. A new regulatory framework will be introduced in 180 days to regulate the issuance and operation of digital assets and assess the possibility of establishing and maintaining a national digital asset reserve (the reserve may come from cryptocurrencies lawfully seized by the federal government through its enforcement work). </p>
<p>5. All agencies must review existing rules affecting the digital asset industry within 30 days and submit recommendations on whether to repeal or modify existing regulations or guidance within 60 days.</p>
<h2>Core Content of the Crypto Executive Order</h2>
<h3>Support Innovation and Responsible Development</h3>
<p>The executive order states that the current administration's policy is to support the responsible development and use of digital assets, blockchain technology, and related technologies across all economic sectors, including:</p>
<p>1. Protecting and promoting the ability of individual citizens and private entities to legally access and use open public blockchain networks, including the development and deployment of software, participation in mining and validation, trading with others without illegal censorship, and the ability to self-custody digital assets;</p>
<p>2. Promoting and protecting dollar sovereignty, including by fostering the development and growth of globally legitimate and compliant dollar stablecoins;</p>
<p>3. Protecting and promoting fair and open access to banking services for all law-abiding citizens and private entities;</p>
<p>4. Providing regulatory clarity and certainty based on technology-neutral regulations, creating a framework that considers emerging technologies, ensuring decision-making transparency, and clearly delineating regulatory boundaries, which are vital for supporting a vibrant and inclusive digital economy as well as innovations in digital assets, permissionless blockchains, and distributed ledger technologies;</p>
<p>5. Taking measures to protect Americans from the risks associated with central bank digital currencies (CBDCs), including prohibiting the establishment, issuance, circulation, and use of CBDCs within the United States to prevent threats to financial system stability, individual privacy, and American sovereignty.</p>
<h3>Revoking Old Policies and Establishing a New Framework</h3>
<p>1. Repealing Executive Order 14067 (Ensuring Responsible Development of Digital Assets) issued on March 9, 2022.</p>
<p>2. The Secretary of the Treasury is to immediately revoke the Department of the Treasury's "Framework for International Engagement on Digital Assets" issued on July 7, 2022.</p>
<p>According to this executive order, today, the Securities and Exchange Commission (SEC) formally revoked the crypto asset accounting standard SAB-121. SAB-121 was a guidance issued by the SEC in 2022 requiring companies holding cryptocurrencies to record these assets on their balance sheets and disclose related risks. This announcement applies to all entities regulated by the SEC, particularly banks and financial institutions, which may face higher capital requirements, thereby affecting their ability to provide cryptocurrency custody services.</p>
<p>In this regard, U.S. Senator Cynthia Lummis stated that the repeal of SAB-121 puts the SEC back on track. Michael Saylor, founder of MicroStrategy, stated that the repeal of SAB-121 allows banks to custody Bitcoin.</p>
<h3>Establishment of the Presidential Digital Asset Market Working Group</h3>
<p>To coordinate actions across departments, the executive order establishes the Presidential Digital Asset Market Working Group. This group is chaired by David Sacks, Special Advisor on Artificial Intelligence and Cryptocurrency, and includes heads from multiple departments, such as the Secretary of the Treasury, Attorney General, Secretary of Commerce, Secretary of Homeland Security, Director of the Office of Management and Budget, Assistant to the President for National Security Affairs, Assistant to the President for Economic Policy (APEP), Assistant to the President for Science and Technology, Homeland Security Advisor, SEC Chair, and Commodity Futures Trading Commission Chair.</p>
<h3>What Legislative Proposals Does the Working Group Include?</h3>
<p>Within 30 days of the issuance of this order, the Department of the Treasury, Department of Justice, Securities and Exchange Commission, and other relevant agencies (whose leaders include the working group head) should identify all regulations, guidance documents, orders, or other items affecting the digital asset industry. Within 60 days of the issuance of this order, each agency should submit to the President recommendations on whether to repeal or modify each identified regulation, guidance document, order, or other item, or for items outside of regulations, whether they should be adopted in regulations.</p>
<p>Within 180 days of the issuance of this order, the working group should submit a report to the President through APEP, recommending regulatory and legislative proposals to advance the policies established in this order, including:</p>
<p><strong>1. The working group should propose a federal regulatory framework to regulate the issuance and operation of digital assets (including stablecoins) within the United States.</strong>The report should consider regulations concerning market structure, supervision, consumer protection, and risk management.</p>
<p><strong>2. The working group should assess the feasibility of establishing and maintaining a national digital asset reserve and propose criteria for creating such a reserve, which may consist of cryptocurrencies lawfully seized by the federal government through its law enforcement activities.</strong></p>
<p>3. The chairperson shall designate an executive director for the working group, responsible for coordinating its daily functions. In matters concerning national security, the working group should consult with the National Security Council.</p>
<p>4. Where appropriate and in accordance with the law, the working group should hold public hearings and solicit opinions from experts in the digital asset and digital market fields.</p>
<h3>Prohibition of Central Bank Digital Currency</h3>
<p>The executive order states that, unless required by law, no agency shall take any action to establish, issue, or promote a CBDC within or outside the United States. Furthermore, any ongoing plans or initiatives related to the creation of a CBDC within the United States should be immediately terminated, and no further action should be taken to develop or implement such plans or initiatives.</p>
<p>Foresight News Note: An executive order is a directive signed, written, and published by the President of the United States to manage the operations of the federal government, which does not require congressional approval. Executive orders and proclamations have the force of law but are not laws themselves. Only the sitting President of the United States can overturn an existing executive order by issuing another executive order.</p>
<h2>What Are the Potential Impacts?</h2>
<p>A clear regulatory framework and government support will provide a more stable development environment for the digital asset industry, attracting more capital and talent into the field. At the same time, ordinary investors will have more confidence in the digital asset industry due to stricter regulations and higher transparency.</p>
<p>Additionally, by promoting the global development of stablecoins (rather than CBDCs), the United States will further consolidate the dollar's dominant position in the international financial system, enhancing its economic influence. Meanwhile, stablecoins are set to enter their own golden age, becoming an important bridge between traditional finance and digital finance.</p>
<p>It is noteworthy that Trump's crypto executive order excludes the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) from the digital asset working group. The FDIC is responsible for ensuring the safety of bank deposits, and its exclusion may weaken the working group's ability to protect consumer rights and maintain financial stability. The absence of the Federal Reserve and FDIC may lead to a fragmented regulatory framework.</p>
<p>Regarding the establishment of a digital asset reserve, the digital asset working group should evaluate the possibility of establishing and maintaining a national digital asset reserve, which may consist of cryptocurrencies lawfully seized by the federal government through its law enforcement activities. It has not yet been indicated that cryptocurrencies will be purchased from the open market.</p>
<p>Michael Saylor stated that the crypto executive order signed by Trump marks the official start of a crypto renaissance. This executive action not only provides clear policy guidance and strong legal support for the development of the U.S. digital asset industry but also injects new vitality and momentum into the prosperity and development of the global digital financial market. Policy adjustments in the digital asset sector in the United States may trigger imitation or responses from other countries, thereby promoting regulatory coordination and cooperation on digital assets globally.

Prohibiting CBDC, Upholding Dollar Sovereignty, Trump Signs First Crypto Executive Order