The Digital Asset Executive Order: A Defining Moment for Crypto in America

President Trump’s Executive Order on digital financial technology marks a monumental shift in the U.S. government's approach to crypto, signaling a decisive break from past regulatory uncertainty and setting the stage for a pro-innovation future. By prioritizing clear rules, fair market access, and a commitment to financial sovereignty, this directive fulfills key campaign promises and positions the U.S. as a global leader in blockchain and digital assets.This moment represents a turning point for the crypto industry—one that could drive greater institutional adoption, accelerate blockchain innovation, and solidify America's leadership in the rapidly evolving digital asset ecosystem.This report examines the key initiatives implemented since Trump’s return to office, assessing their impact on the broader crypto ecosystem and the future of financial innovation in the U.S.

EO: Strengthening America’s Leadership In Digital Financial Technology

In keeping true to his campaign trail promises, President Trump’s Executive Order: Strengthening America’s Leadership in Digital Financial Technology aims to establish the United States as a global leader in crypto and blockchain innovation. This directive lays out a strategic vision for fostering blockchain innovation, enhancing regulatory clarity, and protecting financial sovereignty.The following are the high-level policies outlined in the executive order:

• Protecting Digital Asset Rights: Ensuring individuals and businesses can lawfully access and use blockchain networks without persecution, including the right to self-custody, transact freely, develop software, and participate in mining and validation.
• Reinforcing USD Dominance Via Stablecoins: Promoting the development and global adoption of legitimate, dollar-backed stablecoins.
• Ensuring Fair Banking Access for Crypto Companies: Guaranteeing that all law-abiding individuals and businesses have equal access to banking services.
• Providing Regulatory Clarity: Establishing transparent, technology-neutral regulations with well-defined jurisdictional boundaries to foster innovation in digital assets, permissionless blockchains, and distributed ledger technologies.
• Prohibiting Central Bank Digital Currencies (CBDCs): Banning the establishment, issuance, and circulation of a CBDC in the U.S. to protect financial stability, individual privacy, and national sovereignty.

Working Group on Digital Asset Markets

To implement these policy objectives, the administration has established the President’s Working Group on Digital Asset Markets within the National Economic Council. This group, chaired by the Special Advisor for AI and Crypto, David Sacks, brings together key officials from the Treasury Department, SEC, DOJ, and other relevant agencies to develop a cohesive regulatory framework for digital assets. Other than Sacks, some notable key officials included are 

The Chairman of the SEC: Paul Atkins (interim Mark Uyeda)

The Chairperson of the CFTC: Caroline Pham

The Secretary of Commerce: Howard Lutnick (interim Jeremy Pelter)

The Secretary of the Treasury: Scott Bessent

‍Figure 1: Working Group on Digital Asset Markets - Key Titles and Their Respected Officials 

Source: 21Shares, The White House

The President’s Working Group on Digital Asset Markets is tasked with assessing the regulatory landscape and developing a framework that supports innovation while ensuring financial stability and consumer protection. Comprising key government agencies, it will evaluate existing policies, recommend reforms, and engage with industry leaders to shape a clearer regulatory approach for digital assets. The following sections will outline its specific mandates in detail.

Crypto Regulatory Review and Policy Overhaul

The working group has been tasked with conducting a comprehensive review of the existing regulatory landscape for digital assets and recommending necessary reforms. Within 30 days, relevant agencies—including the Treasury Department, Justice Department, and SEC—must identify all regulations, guidance documents, and policies impacting the sector. Within 60 days, these agencies will submit recommendations on whether specific policies should be rescinded, modified, or formally adopted into regulation.

This review could lead to clearer guidelines on issues like securities classification, stablecoin regulation, and banking access for crypto firms, potentially reducing regulatory uncertainty and fostering greater institutional adoption. The working group may push for modifications to SEC policies on token classification, rollback restrictive banking regulations that limit crypto firms' access to financial services, and refine tax policies to provide more clarity on digital asset transactions. If successful, these changes could create a more predictable and innovation-friendly environment for the crypto industry in the U.S.

Federal Regulatory Framework, Stablecoin Regulation, and the Digital Assets Stockpile

The President’s Working Group on Digital Asset Markets is responsible for developing a comprehensive regulatory strategy to advance the administration’s digital asset policies. Within 180 days, it will submit a report to the President outlining key recommendations for legislative and regulatory reforms. This report will focus on establishing clear guidelines to promote innovation while ensuring financial stability and consumer protection.

As part of its mandate, the working group will specifically address:

1. Federal Regulatory Framework: Proposing a unified approach to digital asset regulation, including market structure, oversight, consumer protection, and risk management.

The call to action for a clear federal regulatory framework is crucial in addressing the long-standing lack of clarity surrounding digital asset regulation in the U.S. Without a unified approach, the industry has faced fragmented oversight, with agencies like the SEC and CFTC offering conflicting guidance, creating uncertainty for businesses and investors. By establishing clear rules for market structure, oversight, consumer protection, and risk management, the order aims to foster innovation while ensuring financial stability. A well-defined framework will provide regulatory certainty, attract institutional adoption, and position the U.S. as a global leader in digital finance.

2. Stablecoin Oversight: Evaluating policies to support the development and global adoption of lawful, dollar-backed stablecoins.

Stablecoins are a vital part of the digital asset ecosystem, providing a fast and accessible way to transact in U.S. dollars globally. However, without proper oversight, they pose risks to financial stability, consumer protection, and national security. Regulatory clarity is crucial to ensuring they maintain their peg, operate with transparent reserves, and are issued by responsible entities.

At the same time, stablecoins strengthen the U.S. dollar’s dominance by increasing its accessibility and usability worldwide. Figure 2 below shows how much stablecoin demand has grown since 2021. Unlike traditional banking, stablecoins offer a seamless, cost-effective way to transact, expanding global demand for dollars and reducing reliance on intermediaries. By reinforcing the dollar’s role in global trade and finance, stablecoins help maintain its status as the world’s reserve currency. A clear regulatory framework will ensure their growth supports financial stability while preserving U.S. economic leadership.

Figure 2: USD Denominated Stablecoin Market Cap Growth Since 2021

Source: 21Shares, Defillama

3. A National Digital Asset Stockpile: Assessing the feasibility of a government-managed reserve of digital assets, potentially sourced from lawfully seized cryptocurrencies.

The Working Group shall assess the feasibility of establishing and managing a national digital asset stockpile, defining the criteria for its implementation. This includes evaluating the potential use of lawfully seized cryptocurrencies as a foundation for the stockpile and determining the regulatory and logistical framework necessary for its operation. As part of this review, the Working Group will analyze how Bitcoin, given its scarcity and historical appreciation, could strengthen the U.S. government’s balance sheet by serving as a hedge against inflation, currency devaluation, and economic uncertainty. With Bitcoin’s performance consistently outpacing the dollar’s strength over the past decade, as seen in Figure 3, its inclusion alongside traditional reserves could enhance financial stability and debt management while positioning the U.S. as a leader in digital asset adoption.

Figure 3: DXY Price (index on USD strength) vs BTC Price

Source: 21Shares, Yahoo Finance

Revocation of Biden’s EO and The Prohibiton of CBDCs:

The executive order revokes President Biden’s Executive Order 14067 and the Department of the Treasury’s 2022 framework on international digital asset engagement, which had been criticized for stifling crypto innovation, increasing regulatory uncertainty, and deterring institutional adoption in the U.S. It also prohibits the development, issuance, or promotion of a central bank digital currency (CBDC), citing concerns over financial privacy, government overreach, and potential constitutional violations. By reversing restrictive policies and blocking CBDC initiatives, the order aims to foster a more open and innovation-friendly digital asset landscape.

Conclusion:

With this executive order, the U.S. is embracing digital asset innovation rather than stifling it, ushering in a new era of regulatory clarity and strategic growth. By fostering an environment that supports responsible development while protecting financial freedom, the administration is laying the groundwork for a more resilient and competitive digital economy. This shift not only strengthens America’s position in the global financial system but also paves the way for crypto to become an integral part of the country’s economic future.