Trump Orders the Creation of Crypto Working Group and Bans Central Bank Digital Currencies

Trump Orders the Creation of Crypto Working Group and Bans Central Bank Digital Currencies

Key Points

  • Trump ordered the formation of a cryptocurrency working group to draft new regulations and explore a national crypto stockpile.
  • The executive order bans the creation of a U.S. central bank digital currency (CBDC).
  • The SEC rescinded costly crypto asset safeguarding requirements for listed companies.
  • Trump’s order aims to protect crypto firms’ access to banking services.

U.S. President Donald Trump has issued an executive order establishing a cryptocurrency working group tasked with drafting new digital asset regulations and exploring the formation of a national cryptocurrency stockpile. This move marks a significant step in Trump’s promise to revamp the U.S. crypto landscape and provide clearer regulatory frameworks for the industry.

The order mandates the protection of banking services for cryptocurrency companies, addressing industry concerns that regulatory bodies have pressured banks to cut off crypto firms—an allegation regulators previously denied. Additionally, the order explicitly bans the development of central bank digital currencies (CBDCs), which Trump believes could challenge existing cryptocurrencies.

In a major win for the crypto industry, the U.S. Securities and Exchange Commission (SEC) rescinded accounting rules that had made it costly for publicly traded companies to safeguard digital assets on behalf of clients. Crypto advocates argued that these regulations had hindered the broader adoption of digital assets.

Trump’s pro-crypto stance starkly contrasts the policies of former President Joe Biden’s administration, which took a tougher regulatory approach, suing major crypto exchanges like Coinbase and Binance for alleged violations of U.S. laws. The industry has widely welcomed Trump’s order, with Nathan McCauley, CEO of Anchorage Digital, calling it a “sea change” in U.S. digital asset policy.

The executive order also calls for a comprehensive regulatory framework for cryptocurrencies involving key government figures such as the Treasury Secretary and the heads of the SEC and Commodity Futures Trading Commission (CFTC). This framework will address various aspects of digital assets, including stablecoins—cryptocurrencies pegged to the U.S. dollar.

A notable component of the order is the potential creation of a national digital asset stockpile, which may consist of cryptocurrencies lawfully seized by the federal government. However, details on the implementation remain unclear, and experts are debating whether Congress’s approval will be required.

EDITORIAL TEAM
EDITORIAL TEAM
TechGolly editorial team led by Al Mahmud Al Mamun. He worked as an Editor-in-Chief at a world-leading professional research Magazine. Rasel Hossain and Enamul Kabir are supporting as Managing Editor. Our team is intercorporate with technologists, researchers, and technology writers. We have substantial knowledge and background in Information Technology (IT), Artificial Intelligence (AI), and Embedded Technology.

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