On Jan. 23rd, 2025, ‘crypto president’ Donald Trump officially signed an executive order to create a national Bitcoin strategic r eserve while banning Central Bank Digital Currencies (CBDCs) completely. As you can see in the historic video below, it was the White House Crypto Czar David Sacks who brought Trump the order and stood beside him as he signed and proudly showed it off to the world, officially beating China and Russia in what could’ve been a full-on crypto cold war. document.createElement('video'); https://www.cryptopolitan.com/wp-content/uploads/2025/01/qEpyKaIf8StUOzib.mp4 The president said , “The digital asset industry plays a crucial role in innovation and economic development in the United States, as well as our Nation’s international leadership. It is therefore the policy of my Administration to support the responsible growth and use of digital assets, blockchain technology, and related technologies across all sectors of the economy.” A framework for digital asset policies One of Trump’s key objectives is the protection of individual citizens’ rights to use open, permissionless blockchain networks without fear of censorship. The administration also guarantees private-sector entities the freedom to build, mine, and transact on these networks. Another major focus of the executive order is the promotion of dollar-backed stablecoins. Trump’s policy framework explicitly prioritizes these stablecoins as a tool to strengthen the sovereignty of the U.S. dollar in global markets. His exact words were: “We’re promoting and protecting the sovereignty of the United States dollar, including through actions to promote the development and growth of lawful and legitimate dollar-backed stablecoins worldwide.” Trump’s administration has also taken a hard stance against government-controlled digital currencies. According to the order, CBDCs threaten individual privacy and financial stability. The order explicitly prohibits federal agencies from creating, issuing, or circulating any form of CBDC within the United States. Trump said, “Except to the extent required by law, any ongoing plans or initiatives at any agency related to the creation of a CBDC within the jurisdiction of the United States shall be immediately terminated, and no further actions may be taken to develop or implement such plans or initiatives.” The order also calls for regulatory clarity across the digital asset ecosystem. Federal agencies are directed to create technology-neutral regulations and transparent frameworks that encourage innovation while minimizing risks. “The government’s goal is to establish clear boundaries for oversight, ensuring all agencies work cohesively to support the digital economy,” said president Trump. The order also establishes a new task force called the ‘President’s Working Group on Digital Asset Markets.’ Chaired by David Sacks, the group includes top officials from the Treasury Department, the Department of Justice, the Securities and Exchange Commission, and the Commodity Futures Trading Commission, among others. Their mission is to evaluate existing policies and propose new regulatory frameworks to govern digital assets in the United States. Within 30 days, agencies must identify all regulations affecting the digital asset sector. Sixty days later, they are required to submit recommendations on which rules should be rescinded, updated, or replaced to align with the administration’s policies. The task force is also tasked with exploring the creation of a national digital asset stockpile. This reserve could include cryptocurrencies seized by law enforcement, potentially repurposed to strengthen national economic security. Within 180 days, the group must submit a detailed report outlining proposals for federal oversight of stablecoins, market structures, consumer protection, and risk management. Public hearings are a key part of this process. The administration wants input from blockchain experts, industry leaders, and other stakeholders to make sure the policies align with the needs of the crypto community. Revoking outdated policies Trump’s executive order also revokes Executive Order 14067, signed in 2022, which was allegedly gonna promote “responsible development of digital assets.” The administration described the earlier policy as inconsistent with its vision for a decentralized financial ecosystem. The order also rescinds the Treasury Department’s “Framework for International Engagement on Digital Assets,” issued in July 2022. All policies and directives tied to these frameworks must now be reviewed and revoked to align with the new executive order. Federal agencies have been directed to ensure full compliance with the updated policies. But as Fox Business journalist Eleanor Terrett pointed out : “It will be interesting to see how the presidential working group goes about collaborating with Congress on the crypto regulatory framework and whether the market structure bill FIT21, which was passed in the House last year, or the stablecoin bill, will be incorporated. Will Congress stand down on legislation until the working group has come up with a plan?” From Zero to Web3 Pro: Your 90-Day Career Launch Plan
