US President Donald Trump has issued his first executive order affecting the cryptocurrency industry, a move that aligns with his campaign promises to support the sector. The announcement, made on January 23 during a televised Oval Office address, was accompanied by David Sacks, Trump’s newly appointed “AI and crypto czar.”
President Trump’s Push to Make the US a Global Crypto Hub
According to Sacks, the executive order aims to establish the United States as the global leader in cryptocurrency. It calls for the formation of an internal working group, chaired by Sacks, to explore strategies for achieving this goal. The working group would include high-ranking officials such as the Treasury Secretary, Attorney General, and chairs of the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), alongside other key members of Trump’s cabinet.
CBDC Ban and Stablecoin Regulation in Focus
The executive order explicitly bans the “establishment, issuance, circulation, and use” of a US central bank digital currency (CBDC). It also directs the working group to study the feasibility of creating a national crypto stockpile and developing a regulatory framework for stablecoins. These measures reflect Trump’s opposition to government-controlled digital currencies, a stance he highlighted during his presidential campaign.
In addition to setting new priorities, Trump’s directive overturns a March 2022 executive order issued by former President Joe Biden, which sought to create a regulatory framework for cryptocurrencies. This move signals a shift in federal policy, with Trump’s administration aiming to position the US as a crypto-friendly jurisdiction.
Challenges to Executive Authority
The scope of Trump’s executive orders has already sparked legal and constitutional questions. For instance, a separate order signed on January 20 attempting to revoke birthright citizenship was swiftly blocked by a federal judge as unconstitutional. Similar challenges could arise regarding the authority of this crypto-focused directive, particularly as it seeks to halt any federal efforts toward developing a CBDC.
Trump’s executive order fulfills one of his key promises to the crypto community during his campaign: halting the development of a potential US CBDC. Whether these actions will solidify the United States’ position as a global crypto leader remains to be seen, but they have already ignited significant debate within the industry.
