TLDR
- Trump’s new executive order creates a crypto advisory group led by tech investor David Sacks and former politician Bo Hines
- The order blocks development of CBDCs while protecting crypto trading and mining rights
- Hester Peirce will lead a new SEC crypto task force aimed at clearer industry guidelines
- Plans for a national digital asset reserve are being explored, though Bitcoin isn’t specifically named
- Government currently holds $1 million in various cryptocurrencies according to blockchain data
The White House took its first concrete steps into cryptocurrency policy Thursday as President Donald Trump signed an executive order establishing a new advisory group and outlining the administration’s approach to digital assets.
Under the order, dubbed “Strengthening American Leadership in Digital Financial Technology,” a Presidential Working Group on Digital Asset Markets will be created to help guide federal policy on cryptocurrencies and blockchain technology. The group will be helmed by David Sacks, a prominent Silicon Valley venture capitalist who now serves as the administration’s first-ever “AI and crypto czar.”
Day-to-day operations of the working group will fall to Bo Hines, who previously ran for Congress as a Republican candidate. The team is expected to expand to include 20 leaders from the cryptocurrency industry, with sources suggesting that campaign donors may receive priority consideration for these positions.
Key government figures will also participate in the working group, including the Treasury Secretary and the heads of major financial regulatory agencies like the SEC and CFTC. While the group won’t have direct policy-making power, it will serve as an important advisory body to both the president and Congress.
The executive order puts several stakes in the ground regarding cryptocurrency policy. It explicitly prohibits federal agencies from developing central bank digital currencies (CBDCs), addressing Republican concerns about government overreach and privacy issues with digital dollars.
Notably, the order explores the creation of a “strategic national digital assets stockpile.” While Bitcoin isn’t specifically mentioned, blockchain data firm Arkham reports that the U.S. government already holds around $1 million worth of various cryptocurrencies. According to Galaxy Digital’s head of research Alex Thorn, the term “stockpile” refers to managing existing holdings rather than necessarily acquiring new ones.
The administration appears focused on protecting cryptocurrency activities within the United States. The order affirms rights for Americans to trade crypto, maintain control of their own digital assets, participate in mining operations, and develop blockchain-related software.
Changes are already visible at the regulatory level. The SEC announced Tuesday the formation of a new crypto task force led by Commissioner Hester Peirce, marking a departure from previous enforcement-heavy approaches. This new group aims to create clearer pathways for crypto projects to operate legally in the U.S.
At the state level, several legislatures are considering their own Bitcoin reserve initiatives. Meanwhile, Senator Cynthia Lummis has introduced federal legislation known as the “Bitcoin Act” to explore national-level cryptocurrency reserves.
Industry observers anticipate additional executive orders may be coming. High on the list of potential actions is the repeal of SAB 121, a rule that currently limits banks’ ability to hold cryptocurrency. While Congress previously voted to remove this restriction, it remained in place due to a veto from former President Biden.
The order also signals potential changes in how federal agencies approach cryptocurrency innovation. The State Department and other agencies may be directed to make fostering crypto development a national priority, marking a shift from previous administrations’ approaches.
Thursday’s Bitcoin price movements suggested market optimism about the new policies, with the cryptocurrency reaching $106,000. The increase came after Senator Lummis hinted at upcoming news via social media platform X.
The executive order replaces previous crypto-related policies, including the Treasury Department’s Framework for International Engagement on Digital Assets. The Trump administration had criticized these earlier policies as overly restrictive to innovation and economic freedom.
The SEC’s controversial exchange rule affecting decentralized finance projects may also be addressed in future orders, according to sources familiar with the administration’s plans.
These policy changes represent the beginning of what appears to be a comprehensive approach to cryptocurrency regulation and development under the Trump administration, with more initiatives expected in the coming months.
The formation of the working group suggests a new phase in how the federal government approaches digital assets, potentially setting the stage for increased integration of cryptocurrency into mainstream financial systems.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support