Navigating the US's new crypto terrain: Trump's Executive Order on digital financial technology

Prior to Inauguration Day some questioned whether – and to what degree – the Trump Administration was serious about prioritizing crypto. Trump’s first week in office has made clear that addressing digital assets regulation is far more than merely a campaign talking point.  

On January 23, 2025, the White House issued an executive order entitled “Strengthening American Leadership in Digital Financial Technology”. The stated purposes include promoting United States leadership in digital assets and financial technology while protecting economic liberty. This Executive Order reflects a pro-digital assets approach by the White House and, among other things, revokes former President Biden’s 2022 Executive Order 14067 (EO 14067) entitled “Ensuring Responsible Development of Digital Assets.” 

Key provisions

The Executive Order: 

• Encourages the lawful use of digital assets and blockchain technologies. Further, it aims to promote the development of dollar-backed stablecoins to ensure that the US dollar retains its sovereignty in the digital age.
   
• Explicitly calls for technology-neutral regulatory frameworks to facilitate a vibrant digital economy. Further, the Executive Order notes that transparency in decision making and well-defined regulatory boundaries are important in the efforts that will follow.
   
• Seeks to protect and promote fair and unrestricted access to banking services for all citizens and private businesses.
   
• Prohibits any federal agency from establishing, issuing, or promoting Central Bank Digital Currencies. CBDCs are defined as “a form of digital money or monetary value, denominated in the national unit of account, that is a direct liability of the central bank.” The move to prohibit CBDCs is intended to protect individual privacy and prevent security concerns associated with CBDCs.
   
• In addition to revoking Biden's EO 14067, directs the Secretary of the Treasury to immediately revoke the Treasury Department’s July 7, 2022, guidance, entitled “Framework for International Engagement on Digital Assets”.
   
• Rescinds all policies, directives and guidance issued pursuant to EO 14067, and directs the Secretary of the Treasury to revoke all policies, directives and guidance issued pursuant to the Prior Treasury Guidance.

Institutional framework

In addition to the key provisions noted above, the Executive Order establishes within the National Economic Council a working group on digital asset markets, which will be chaired by the Special Advisor for AI and Crypto. The Working Group will include key officials such as the Secretary of the Treasury, the Secretary of Commerce, the Chair of the Commodity Futures Trading Commission and the Chair of the Securities and Exchange Commission. 

The Executive Order directs the working group to propose a Federal regulatory framework for the issuance and operation of digital assets, including stablecoins, giving consideration to provisions for market structure, oversight, consumer protection, and risk management. The working group also will evaluate the potential creation and maintenance of a national digital asset stockpile, potentially derived from digital assets seized in connection with the federal government’s law enforcement efforts.

Implications and takeaways 

• Trump was serious about Crypto: As noted above, the timing of the Executive Order appears to signal that crypto is a Trump Administration priority. Indeed, in just his first few days as the 47th President, Trump has signaled a major shift in US government policy related to crypto and other digital assets. In addition, days prior to his inauguration, the world saw the launch of Trump Coin and Melania Coin, memecoins that appreciated rapidly before experiencing declines, yet still representing billions of dollars in market cap.
   
• For Stakeholders:
  • For Financial Institutions: The Executive Order promotes “fair and open” access to banking services for all law-abiding citizens and private sector entities, a likely indication that the Trump Administration intends to push back against the debanking of certain categories of “high-risk” or politically disfavored clients. The Executive Order also encourages the adoption and improvement of innovative financial technologies, though it does not directly address certain Biden Administration supervisory restrictions on the ability of banks and other financial institutions to engage in digital assets activities.
  • For Technology Developers: There is a significant push towards safeguarding space for developers to innovate without unnecessary barriers.
  • For Global Business Relationships: Although the Executive Order focuses on national policies, its provisions will have an impact on international partnerships and collaborations, particularly in standard-setting and cross-border digital financial transactions.

Looking ahead - what's missing?

Many in the industry were hoping to see a push for Federal agencies to re-evaluate their approach to crypto enforcement, including existing dockets. This may be addressed in future executive orders, or by the SEC’s new Acting Director of the Division of Enforcement, but was not addressed expressly in the Executive Order.