In a significant move for the cryptocurrency sector, U.S. President Donald Trump has issued his first executive order with implications for crypto enthusiasts and industry stakeholders—an action anticipated early in his presidency.
Speaking from the Oval Office on Jan. 23, Trump, joined by his “AI and crypto czar” David Sacks, outlined the details of the order during a televised announcement.
Sacks explained that the executive order establishes a specialized “internal working group” aimed at positioning the United States as a global leader in cryptocurrency innovation. He will head the group, overseeing its objectives.
The order explicitly bans “the establishment, issuance, circulation, and use” of any U.S. central bank digital currency (CBDC). Furthermore, the group will explore the feasibility of creating a national cryptocurrency reserve and establishing regulatory measures for stablecoins.
If formed, the working group will include key figures such as the Treasury Secretary, the Attorney General, the chairs of the Securities and Exchange Commission and the Commodity Futures Trading Commission, as well as other cabinet members and agency leaders.
During the address, Trump praised Sacks, suggesting that the initiatives outlined in the executive orders on cryptocurrency and AI would yield substantial benefits. The text of the order also annuls a March 2022 directive by former President Joe Biden, which had instructed federal agencies to develop a regulatory framework for digital assets.
The extent of a president’s authority to enforce certain laws and policies through executive orders remains a contentious issue. For instance, a recent executive order signed by Trump on Jan. 20, which sought to eliminate birthright citizenship under the 14th Amendment, was swiftly blocked by a federal judge on constitutional grounds.
Halting the development of a U.S. CBDC was one of Trump’s campaign pledges to the cryptocurrency community. Additionally, he fulfilled a promise to pardon Ross Ulbricht, the founder of Silk Road. However, he has yet to address his campaign statement about ensuring all Bitcoin is “made in the USA” since assuming office.
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