President Donald Trump has signed an executive order that could change the crypto landscape in the US. The order bans central bank digital currencies (CBDCs), creates a working group to make America a leader in crypto, and assigns the group the task of investigating stablecoin regulations and a national crypto stockpile.
The order's main points prohibit the development of US CBDCs and exclude the Fed and FDIC from discussions about crypto policy. It also revokes Biden's 2022 crypto regulatory framework. The working group will include top officials such as the Treasury Secretary and SEC Chair. Trump says this move will make Sacks "a lot of money."
Notably, the directive excludes the Federal Reserve and FDIC from cryptocurrency policymaking. Caitlin Long, CEO of Custodia Bank, considers this a great start. In a similar decision, the SEC reversed SAB 121. This contentious rule compelled businesses to record customers' cryptocurrency holdings as liabilities. The new SAB 122 makes it easier for US institutions to store digital assets.
The industry's reactions are divided. Some applaud the exclusion of central banks from stablecoin policy. Others doubt the president's right to execute such broad changes through executive orders.
Trump's decision fulfills campaign pledges by halting CBDC development and pardoning Silk Road founder Ross Ulbricht. However, he has not commented on his commitment to have all Bitcoin "made in the USA." This executive order represents a dramatic shift in US cryptocurrency policy. Its entire impact will be determined once implementation begins.
