By CryptoSlate | Created at 2025-01-23 21:06:09 | Updated at 2025-01-24 02:36:59
5 hours ago
President Donald Trump signed an executive order on Jan. 23 establishing a new working group focused on crypto, potentially a “strategic national digital assets stockpile,” and prohibits advancements in creating a central bank digital currency (CBDC).
The Presidential Working Group on Digital Asset Markets will play a pivotal role in shaping US policy on digital finance, offering advice on legislation, regulatory frameworks, and innovation in the crypto sector.
The order outlines a range of responsibilities for the newly formed working group.
The first is the development of a regulatory framework. The group will design a federal regulatory framework governing digital assets, including stablecoins, to provide clarity and support for innovation in the sector.
Additionally, the order includes evaluating and potentially establishing a national digital assets stockpile, focusing on Bitcoin (BTC). This would mark the first effort by a US administration to create a strategic crypto reserve.
According to Alex Thorn, head of research at Galaxy Digital, the stockpile is a term for holding what the US government has “but not necessarily buying anything.” He added that Arkham data shows that US authorities hold $1 million worth of 16 other crypto besides BTC.
The order also mentions a joint effort with key figures such as the Secretary of the Treasury, the Chairman of the Securities and Exchange Commission, and other high-ranking officials to ensure coordination among agencies.
David Sacks, the “White House AI & Crypto Czar,” will play a fundamental role in leading the group in consulting with leading experts in digital assets and markets, incorporating insights from outside the federal government.
Additionally, the order mandates that agencies identify and recommend modifications to existing regulations that could hinder the growth of the digital asset sector.
Notably, it explicitly prohibits federal agencies from advancing CBDCs.
Lastly, the executive order rescinds the previous administration’s Digital Assets Executive Order and the Treasury Department’s Framework for International Engagement on Digital Assets, which Trump’s team criticized for stifling innovation and economic liberty.
