The order establishes the president’s Working Group on Digital Asset Markets, tasked with developing a federal regulatory framework for digital assets, including stablecoins.
On January 23, 2025, President Donald Trump took the first major step to fulfill his campaign promise to make the United States the “crypto capital of the planet,” issuing an executive order entitled, “Strengthening American Leadership in Digital Financial Technology.” The order outlines a strategic framework for promoting U.S. leadership in digital assets and financial technology.
The executive order makes express the bold policy of the Trump administration to support “the responsible growth and use of digital assets, blockchain technology, and related technologies across all sectors of the economy.” Key objectives include protecting individuals’ rights to access open public blockchain networks, preserving the sovereignty of the U.S. dollar through the support of stablecoins, and expressly reversing the “debanking” policies of the past administration. The new administration aims to create a comprehensive regulatory framework that is technology-neutral, transparent and supportive of a vibrant digital economy. This new landscape will involve the apparent collaboration of many key federal agencies and U.S. departments including the Securities Exchange Commission, Commodity Futures Trading Commission, Treasury, Commerce and Homeland Security, among others.
The order establishes the president’s Working Group on Digital Asset Markets, tasked with developing a federal regulatory framework for digital assets, including stablecoins. This group has been given a tight timeline, by Washington, D.C., standards, to assess existing regulations (30 days), propose reforms to existing regulatory regimes (60 days), and submit a report to the president recommending regulatory and legislative proposals for the advancement of the policies outlined in the executive order (180 days).
Notably, the executive order takes a clear stance against a central bank digital currency (CBDC), mandating that any ongoing initiatives related to CBDCs be halted. The order revokes the Biden administration’s digital assets Executive Order 14067 and related Treasury frameworks, including the Treasury Department’s Framework for International Engagement on Digital Assets.
Interestingly, the order is tabling for review and consideration the potential creation and maintenance of a national digital asset stockpile. This may disappoint the crypto industry, which was bracing for an announcement on a national Bitcoin reserve. That celebration may have to wait.
Duane Morris is following these events in real time and will provide updates as the mandates of the executive order are carried out.
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