Key Takeaways:
- Crypto Innovation Focus: Trump signed an executive order establishing a crypto working group, chaired by David Sacks, aiming to position the U.S. as a global leader in cryptocurrency innovation.
- CBDC Ban: The order explicitly bans the development of a U.S. central bank digital currency (CBDC) and outlines plans for exploring a national crypto reserve and stablecoin regulations.
- Policy Reversal: The directive repeals Biden’s 2022 crypto regulatory framework and reflects Trump’s campaign promises, including blocking CBDC development.
President Donald Trump signed an executive order on January 23, marking his administration’s first major policy action on cryptocurrency.
Announced alongside his “AI and crypto czar,” David Sacks, the order establishes a working group to position the U.S. as a global leader in crypto innovation.
🚨President Trump has signed an executive order banning Central Bank Digital Currency (CBDC)
— DC_Draino (@DC_Draino) January 23, 2025
This was going to be abused by big banks as a social credit score where they could freeze your money for wrong think
Huge day for freedom pic.twitter.com/QSyLZec5u7
This group, chaired by Sacks, will develop policies to promote crypto adoption, including a national cryptocurrency reserve and a regulatory framework for stablecoins.
Significantly, the order bans the development and use of a U.S. central bank digital currency (CBDC), fulfilling one of Trump’s campaign promises.
Trump has expressed concerns that a CBDC could threaten financial freedom.
The directive also repeals a 2022 executive order by former President Joe Biden that sought to regulate crypto comprehensively.
The working group will feature top officials, including the U.S. treasury secretary, attorney general, SEC chair, and others.
Trump emphasized the economic opportunities crypto and artificial intelligence offer.
The executive order adds to Trump’s campaign commitments, including his recent pardon of Silk Road founder Ross Ulbricht.
While significant for the crypto industry, questions persist about whether these measures can withstand legal scrutiny.
Trump’s move underscores his administration’s focus on making crypto and AI central to U.S. economic policy.
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Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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