Trump Signs Executive Order to Position US as Crypto Leader and Create Digital Asset Reserve

Highlights:

• Trump’s executive order aims to position the U.S. as a global crypto leader.
• The Presidential Working Group will evaluate the creation of a national digital assets reserve.
• The order bans CBDCs and suggests using seized assets for the national stockpile.

On January 23, President Donald Trump signed an executive order aimed at positioning the United States as a leader in the global crypto market. The executive order creates the Presidential Working Group on Digital Asset Markets to enhance U.S. leadership in digital finance. This group will evaluate the establishment of a national digital assets reserve and develop a federal regulatory framework for governing digital assets, including stablecoins. 

🚨NEW per my @FoxBusiness colleague @EdwardLawrence: The #crypto executive order has officially been signed.

Here are the details:

📌The Executive Order establishes the Presidential Working Group on Digital Asset Markets to strengthen U.S. leadership in digital finance.

📌The…

— Eleanor Terrett (@EleanorTerrett) January 23, 2025

The executive order hints at a national digital assets stockpile, sparking discussions about a strategic Bitcoin reserve. It suggests the stockpile could include crypto assets seized by the Federal Government. According to Arkham data, the U.S. Government currently holds $21 billion in confiscated digital assets, primarily Bitcoin, totaling over 198,000 BTC in its wallets. These assets might be repurposed or transferred to establish the stockpile.

Trump’s Executive Order Bans US CBDC Development

The order also prohibits the “establishment, issuance, circulation, and use” of a US central bank digital currency (CBDC). 

It stated:

“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.”

Trump Appoints Sacks to Lead New Crypto Working Group

This development follows closely after the US president reiterated his goal to make the country the global leader in crypto and AI. White House AI and Crypto Czar David Sacks will lead the Working Group, which includes the Treasury Secretary, the Chairman of the Securities and Exchange Commission, and other key department heads. Sacks will consult with crypto industry stakeholders to ensure the group benefits from industry expertise.

The US president remarked that Sacks would “make a lot of money” from the executive orders on AI and crypto. The crypto order also revokes a March 2022 EO from former President Joe Biden, which instructed US government agencies to create a crypto regulatory framework.

Trump’s Digital Asset Stockpile Order Sparks Debate on Bitcoin Reserve Plans

Donald Trump’s executive order to create a national digital asset stockpile has sparked questions. People wonder how it connects to the president’s promise of a strategic Bitcoin reserve. Alex Thorn, Head of Research at Galaxy Digital, clarified that this development doesn’t guarantee the creation of the BTC reserve. He explained that the term “stockpile” is “jargon” for the US holding the digital assets it already has without necessarily acquiring more.

i want to be clear that the EO doesn't say the government WILL hold ALL the coins it currently holds

it says this explicitly:

The Working Group shall evaluate the potential creation and maintenance of a national digital asset stockpile and propose criteria for establishing such…

— Alex Thorn (@intangiblecoins) January 23, 2025

Bloomberg analyst James Seyffart supported Thorn’s view. He noted that Donald Trump was cautious with his wording. As early as last summer at the Bitcoin conference, Trump used “stockpile” instead of “Reserve.”

Peter Schiff, a Bitcoin critic and renowned economist, also shared his thoughts on the executive order. He highlighted that Trump signed an order to form a crypto working group. This group will advise on digital asset policy and work with Congress on crypto legislation. Schiff pointed out that the order is not exclusive to Bitcoin. It also doesn’t guarantee the creation of a strategic reserve.

Trump signed an order to create a cryptocurrency working group to advise on digital asset policy and work with Congress on crypto legislation. This is not exclusive to Bitcoin, nor does it assure that a "strategic" reserve will be created. It's just an easy way to pay off donors.

— Peter Schiff (@PeterSchiff) January 23, 2025