Key Takeaways
- The crypto industry is optimistic. US President Donald Trump signed an executive order creating a working group that will propose a digital asset policy framework within 180 days.
- The working group will hold open hearings and receive advice from industry experts, with instructions to identify legislative and regulatory proposals that advance the order’s objectives.
- The working group includes senior officials from regulatory bodies like the SEC and the CFTC, as well as representatives from other agencies, including the cabinet and national security.
US President Donald Trump has issued the highly anticipated executive order on digital assets, which has given the crypto industry even more optimism.
Speaking at the World Economic Forum in Davos, Switzerland, the US President pledged that the United States will become “the world capital of artificial intelligence and crypto.” The executive order on digital assets, “Strengthening American Leadership in Digital Financial Technology,” ordered the creation of a cryptocurrency working group that will propose crypto regulation and explore the creation of a US Bitcoin stockpile, just like he promised during the campaigns.
Strict Instructions and Timelines
According to the President’s executive order on digital assets, the cryptocurrency industry remains critical to America’s economic development, innovation, and international leadership. The order further stated that it would:
“Support the responsible growth and use of digital assets, blockchain technology, and related technologies across all sectors of the economy.”
The newly formed Working Group is under strict instructions to overhaul US crypto regulations. Per the given timelines, regulatory agencies like the SEC, DOJ, and the Treasury have until February 22, 2025, to identify and evaluate all existing crypto-related rules and compare them with what the federal government has done so far. The agencies will then have until March 24, 2025, to recommend whether to repeal, modify, or keep those rules.
Develop a Clear Regulatory Framework for Cryptocurrencies
The Working Group is expected to present a comprehensive report by July 22, 2025, proposing creating a federal framework for digital assets. The proposal is expected to include rules covering all aspects of the industry, including market structure, stablecoins, consumer protection, and risk management. Moreover, the group will evaluate the creation of a national Bitcoin stockpile, beginning with the seized cryptocurrencies. However, the order did not mention the plans to do with a Bitcoin strategic reserve.
The order seeks to:
“Provide regulatory clarity and certainty built on technology-neutral regulations, frameworks that account for emerging technologies, transparent decision making, and well-defined jurisdictional regulatory boundaries […] consider provisions for market structure, oversight, consumer protection, and risk management.”
The working Group’s members include the chairs of the SEC and CFTC, the Treasury Secretary, and heads of other agencies. Their core mandate would be developing a clear regulatory framework for cryptocurrencies, as stipulated in the executive order for digital assets. That will include proposals on stablecoins, the digital asset usually pegged to the dollar.
Conclusion
The decision by US President Trump to sign the executive order on digital assets signals a shift in the country’s policy on crypt. The new administration has made bold moves to fulfill campaign promises to the crypto industry, including firing Gen Gensler, eliminating Operation Chokepoint 2.0, and defending self-custody. As clear policies with definite timelines come into play within the US crypto space, the country could as well become “the world capital of artificial intelligence and crypto” and have the rest of the world benefit from it.
