US President Donald Trump has ordered a cryptocurrency working group tasked with developing new regulations for digital assets and exploring the creation of a national cryptocurrency reserve.
This move follows through on his pledge to overhaul US crypto policy swiftly.
The executive order also mandates the protection of banking services for cryptocurrency companies, addressing industry accusations that US regulators have pressured banks to sever ties with crypto firms which is a claim regulators deny.
Additionally, the order prohibits the creation of Central Bank Digital Currencies (CBDCs) in the US, preventing potential competition with existing cryptocurrencies.
In another significant step championed by the cryptocurrency sector, the US Securities and Exchange Commission (SEC) announced late Thursday it had withdrawn accounting guidance that had made it prohibitively expensive for certain publicly traded companies to hold cryptocurrencies on behalf of clients. Industry leaders criticised the guidance for impeding the adoption of digital assets.
During his campaign, Trump positioned himself as a “crypto president,” promising to promote the growth and adoption of digital assets.
This stance sharply contrasts with the approach of former President Joe Biden’s administration, which sought to regulate the industry more strictly to combat fraud and money laundering.
Biden’s regulators filed lawsuits against major exchanges, including Coinbase and Binance, accusing them of violating US laws—allegations the companies deny.
Thursday’s order was welcomed by the cryptocurrency industry, which had been urging the new administration to signal strong support for the sector.
If enacted by relevant regulators, Trump’s order could propel cryptocurrencies into the mainstream, according to regulatory and industry experts. The order follows Tuesday’s announcement by the SEC of a task force to overhaul crypto policy.
Bitcoin surged to a record high of $109,071 on Monday amidst investor optimism about the administration’s crypto-friendly stance, although it had declined to around $103,000 by late Thursday.
The Republican chair of the Senate Banking Committee, Senator Tim Scott said in a statement that within days of taking office, President Trump is delivering on his promise to maintain the United States’ leadership in digital asset innovation.
The cryptocurrency industry has long argued that current US regulations are unsuitable for digital assets. They have called on Congress and regulators to create a clear framework for determining whether a crypto token is a security, a commodity, or falls into another category.
The working group, which will include the Treasury Secretary, the SEC Chair, and the Chair of the Commodity Futures Trading Commission, among other officials, has been tasked with drafting this regulatory framework. This will include guidelines for stablecoins, a form of cryptocurrency typically tied to the US dollar.
