Trump Signs Pro-Crypto Executive Order, Bans CBDCs

January 24, 2025 - 2 min. read

By Yagyesh Jaiswal

Trump Issues Executive Order Against CBDCs, Supports Crypto

President Donald Trump signed an all-encompassing executive order on January 23, 2025, to strengthen the U.S. cryptocurrency industry, revoke Biden-era regulations, and ban central bank digital currencies (CBDCs). The order establishes a federal working group to develop crypto regulations and study a national digital asset stockpile in an attempt to shift policy and position the U.S. as a global leader in crypto.

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Key Directives of the Executive Order

The order creates the Presidential Working Group on Digital Asset Markets, to be chaired by Trump’s AI and Crypto Czar David Sacks. The group includes the Treasury Secretary, SEC Chair, and CFTC leadership. It will propose a unifying regulatory framework within 180 days, review already existing rules for modification or repeal, and study a national digital asset stockpile that could be potentially sourced from seized cryptocurrencies.

The order prohibits federal agencies from researching, issuing, or promoting a U.S. central bank digital currency. It instead focuses on supporting private-sector dollar-backed stablecoins. Trump’s order rescinds President Biden’s 2022 digital asset framework and the Treasury’s international engagement plan, which critics argue smothered innovation.

Regulatory Changes and Market Impact

Acting SEC Chair Mark Uyeda and Commissioner Hester Peirce announced a crypto task force to clarify asset classification, streamline registration, and reduce enforcement-heavy oversight. The SEC will host public hearings to gather industry feedback, a departure from the Gensler-era crackdown. U.S. banks must now offer “fair and open access” to crypto firms, reversing alleged “debanking” practices under the Biden administration.

Industry Reactions and Criticisms

After the announcement, Bitcoin briefly surged to $106,732 before settling near $103,500. Analysts linked the volatility to optimism over regulatory clarity.

Crypto leaders hailed the order. The CEO of Digital Chamber, Perianne Boring, called it a “huge development” in legitimizing blockchain technology. Kraken and Coinbase welcomed the collaborative approach by the SEC as one that reduces regulatory uncertainty. They pointed to Trump’s personal crypto ventures, such as ownership of the $TRUMP memecoin and a stake in World Liberty Financial, to warn about potential conflicts of interest in policy decisions.

While welcomed by stablecoin proponents, some economists argue that this CBDC ban will hinder the U.S. from competing with China’s digital yuan.

The recommendations are due by July 2025 and will help shape the longer-term regulatory environment for crypto. The US Congress will also continue with bipartisan bills in the mold of Senator Lummis’s BITCOIN Act, while its SEC task force works through a plan to complete registration pathways before mid-2025.

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Yagyesh Jaiswal

Yagyesh is a crypto geek and a blockchain educator. Started his crypto journey in 2018...

Yagyesh Jaiswal