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 contents of this executive order include:<ul><li>Protecting crypto rights, such as developing and deploying related software, self-custody, trading, and mining.</li><li>Prohibiting central bank digital currencies (CBDCs).</li><li>Protecting dollar sovereignty and supporting dollar-backed stablecoins.</li><li>Introducing a new regulatory framework 180 days later to regulate the issuance and operation of digital assets, and assessing the feasibility of establishing and maintaining a national digital asset reserve.</li><li>All agencies must review existing rules affecting the digital asset industry within 30 days and submit recommendations on whether to repeal or amend existing regulations or guidance within 60 days.</li></ul>Additionally, the executive order establishes a Presidential Digital Asset Market Working Group, led by Special Advisor on Artificial Intelligence and Cryptocurrency David Sacks, to coordinate actions across departments. The working group will submit a report to the President within 180 days, recommending regulatory and legislative proposals to advance the policies outlined in this order.The potential impact of this order includes providing a more stable development environment for the digital asset industry, attracting more capital and talent into the field, and further consolidating the dollar's dominant position in the international financial system by promoting the global development of dollar stablecoins.

TRUMP

MAGA

Author: KarenZ, Foresight News.

Today, U.S. President Trump officially signed an executive order titled "Strengthening the United States' Leadership in Digital Financial Technologies." This executive action not only marks 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 core contents of this executive order? What are the potential impacts?

TL;DR
1. Protect crypto rights (development and deployment of related software, self-custody, trading, mining);
2. Ban CBDC;
3. Protect U.S. dollar sovereignty, support U.S. dollar-backed stablecoins;
4. Introduce a new regulatory framework in 180 days that will regulate the issuance and operation of digital assets and assess the feasibility of establishing and maintaining a national digital asset reserve (the reserve may come from cryptocurrencies legally seized by the federal government through its law enforcement activities);
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.

Core content of the crypto executive order supports innovation and responsible development.
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:
1. Protecting and promoting individuals' and private entities' legal access to and use of open public blockchain networks, including the ability to develop and deploy software, participate in mining and validation, trade with others without illegal censorship, and self-custody digital assets;
2. Promoting and protecting U.S. dollar sovereignty, including actions to foster the development and growth of globally lawful and compliant U.S. dollar stablecoins;
3. Protecting and promoting equitable and open access to banking services for all law-abiding citizens and private entities;
4. Providing regulatory clarity and certainty based on technology-neutral regulations, creating a framework that considers emerging technologies, ensuring transparency in decision-making, and clearly defining regulatory boundaries, which are crucial for supporting a vibrant and inclusive digital economy and the innovation of digital assets, permissionless blockchains, and distributed ledger technologies;
5. Taking measures to protect Americans from the risks of central bank digital currencies (CBDC), including banning the establishment, issuance, circulation, and use of CBDCs in the United States to prevent threats to financial system stability, individual privacy, and U.S. sovereignty.

Revoking old policies and establishing a new framework
1. Revoke Executive Order 14067 issued on March 9, 2022 ("Ensuring Responsible Development of Digital Assets").
2. The Treasury Secretary shall immediately revoke the framework for international engagement on digital assets published by the Treasury on July 7, 2022.

According to this executive order, today the U.S. Securities and Exchange Commission (SEC) officially revoked the accounting standard SAB-121 for crypto assets. SAB-121 was 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, and may lead them to face higher capital requirements, thereby affecting their ability to offer cryptocurrency custody services. In response, U.S. Senator Cynthia Lummis stated that the revocation of SAB-121 puts the SEC back on track. MicroStrategy founder Michael Saylor commented that the abolition of SAB-121 allows banks to hold Bitcoin.

Establishment of the Presidential Digital Asset Market Working Group
To coordinate actions across departments, the executive order establishes the Presidential Digital Asset Market Working Group. This group is led by David Sacks, Special Advisor on Artificial Intelligence and Cryptocurrency (Chair), and includes heads of multiple departments such as the Treasury, Justice, and Commerce, including the Treasury Secretary, 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.

What legislative proposals does the working group include? Within 30 days from the issuance of this order, the Treasury, Justice Department, SEC, and other relevant agencies (whose heads include the working group leaders) shall identify all regulations, guidance documents, orders, or other items affecting the digital asset industry. Within 60 days from the issuance of this order, each agency shall submit to the President recommendations on whether to repeal or modify each identified regulation, guidance document, order, or other items, or for items outside regulations, to adopt into regulations.

Within 180 days from the issuance of this order, the working group shall submit a report to the president via APEP recommending regulatory and legislative proposals to advance the policies set forth in this order, including:
1. The working group shall propose a federal regulatory framework to regulate the issuance and operation of digital assets (including stablecoins) within the United States. The report shall consider regulations regarding market structure, oversight, consumer protection, and risk management.
2. The working group shall assess the feasibility of establishing and maintaining a national digital asset reserve and propose standards for establishing such reserves, which may come from cryptocurrencies legally seized by the federal government through its law enforcement activities.
3. The President shall appoint an Executive Director of the working group, who will coordinate its daily functions. In matters involving national security, the working group shall consult with the National Security Council.
4. Where appropriate and in accordance with the law, the working group shall hold public hearings and receive input from experts in the field of digital assets and digital markets.

Ban on central bank digital currencies
The executive order states that, unless legally required otherwise, agencies shall not take any action to establish, issue, or promote CBDCs within or outside the United States. Additionally, any agency's ongoing plans or initiatives related to the creation of CBDCs within the United States shall be terminated immediately, and no further actions to develop or implement such plans or initiatives shall be taken.

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 without the need for Congressional approval.Executive orders and announcements have legal effect but are not laws. Only the sitting President of the United States can overturn an existing executive order by issuing another one. What are the potential impacts? 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 gain more confidence in the digital asset industry due to stricter regulations and greater transparency. Additionally, by promoting the global development of stablecoins (rather than CBDCs), the United States will further solidify the dollar's dominant position in the international financial system, enhancing its economic influence. Meanwhile, stablecoins will usher in their own golden age, becoming an important bridge between traditional finance and digital finance. It is worth mentioning that Trump's crypto executive order excluded 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 the FDIC could lead to a fragmented regulatory framework. Regarding the establishment of a digital asset reserve, the executive order states that the digital asset working group should assess the feasibility of establishing and maintaining a national digital asset reserve, which may consist of cryptocurrencies legally seized by the federal government through its law enforcement efforts. It has not yet been indicated that cryptocurrencies will be purchased from the open market. Michael Saylor stated that the crypto executive order signed by Trump marks the official beginning of the 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. Adjustments to U.S. policy in the digital asset space may trigger imitation or responses from other countries, thereby promoting regulatory coordination and cooperation regarding digital assets on a global scale.

Trump Signs First Cryptocurrency Executive Order: Bans CBDCs, Supports Dollar Sovereignty