Trump’s Executive Order Rejects CBDCs, Considers Crypto Reserves, and Aims to Revamp Regulations

CN
8 hours ago

The Executive Order affirms the administration’s dedication to advancing blockchain technology and ensuring the free operation of open public networks. Central to the initiative are principles of regulatory clarity, protecting individuals’ rights to access and use digital assets, and opposing any attempts at unjust censorship. It also emphasizes preserving U.S. monetary independence by rejecting the adoption of central bank digital currencies (CBDCs).

Among its most pivotal measures is a clear prohibition against federal actions to introduce or endorse a CBDC within the U.S. The administration contends that CBDCs threaten financial stability, individual privacy, and national sovereignty. As a result, federal agencies are directed to terminate ongoing CBDC-related projects and halt any future development in this domain.

The order repeals Executive Order 14067 from 2022, along with the Treasury Department’s digital asset engagement framework issued that same year. By doing so, the administration aims to streamline federal approaches and align them with its current objectives for the digital economy. Federal agencies must now reevaluate existing regulations related to digital assets and present proposed updates within 60 days.

In addition, the order creates the President’s Working Group on Digital Asset Markets, to be chaired by a special advisor specializing in artificial intelligence (AI) and cryptocurrency. This group will spearhead the development of a comprehensive regulatory framework for digital assets, including stablecoins, while also exploring the potential for establishing a national digital asset reserve sourced from legally confiscated cryptocurrencies.

This move by the Trump administration comes at a time of heightened interest among cryptocurrency advocates who hope to see bitcoin (BTC) or other digital assets incorporated into the nation’s financial reserves. While the executive order does not explicitly address such proposals, it signals a broader ambition to keep the U.S. at the vanguard of blockchain and digital innovation.

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