TLDR
- Trump signed an executive order establishing a Presidential Working Group on Digital Asset Markets, led by David Sacks and Bo Hines, with potential plans for a national crypto reserve
- The order prohibits federal agencies from developing CBDCs and aims to protect rights for crypto transactions, mining, and blockchain software development
- A new SEC crypto task force led by Hester Peirce will focus on creating “sensible disclosure frameworks” for crypto projects
- The executive order explores creating a “strategic national digital assets stockpile” but doesn’t specifically mention Bitcoin
- The US government currently holds $1 million worth of 16 different cryptocurrencies besides Bitcoin, according to Arkham data
President Donald Trump took his first major step into cryptocurrency policy on Thursday, signing an executive order that establishes a Presidential Working Group on Digital Asset Markets and lays groundwork for potential government involvement in digital asset holdings.
The order, titled “Strengthening American Leadership in Digital Financial Technology,” creates a new advisory body that will help shape the administration’s approach to cryptocurrency regulation and policy. Silicon Valley venture capitalist David Sacks will lead the group as the White House’s first “AI and crypto czar,” with former Republican congressional nominee Bo Hines managing daily operations.
The working group will include key government officials such as the Secretary of the Treasury and the heads of the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). According to previous reports, the council is expected to expand to include 20 crypto founders and CEOs, with priority potentially given to industry figures who contributed to Trump’s presidential campaign.
While the group’s primary role will be advisory, it represents the administration’s first formal step toward engaging with the cryptocurrency industry. The executive order tasks the group with exploring the creation of a “strategic national digital assets stockpile,” though it notably does not mention Bitcoin or any other specific cryptocurrencies by name.
Current data from Arkham shows the U.S. government already holds approximately $1 million worth of 16 different cryptocurrencies besides Bitcoin. Alex Thorn, head of research at Galaxy Digital, clarified that the term “stockpile” refers to holding existing assets rather than necessarily purchasing new ones.
“stockpile” is jargon that means holding what they have, but not necessarily buying anything
according to @arkham, here’s all the coins that the USG holds over $1m pic.twitter.com/CtLEuP5utA
— Alex Thorn (@intangiblecoins) January 23, 2025
The executive order also takes a firm stance against central bank digital currencies (CBDCs), explicitly blocking federal agencies from developing these government-backed digital currencies. This aligns with Republican concerns about privacy issues related to CBDCs.
In a move to protect cryptocurrency activities, the order affirms rights for American companies and citizens to conduct crypto transactions, maintain self-custody of digital assets, participate in mining operations, validate blockchain transactions, and develop blockchain software.
The administration’s crypto initiatives extend beyond the executive order. On Tuesday, the SEC announced a new crypto task force led by Commissioner Hester Peirce, marking a shift from previous regulatory approaches. The task force aims to develop clear disclosure frameworks for crypto projects and companies seeking legal registration.
This change in direction follows criticism of the SEC’s previous “regulation by enforcement” strategy, which industry observers say created uncertainty and drove companies away from the United States. The new task force specifically aims to create more predictable and practical regulatory pathways.
The order also rescinds previous crypto-related policies, including the Treasury Department’s Framework for International Engagement on Digital Assets, which Trump’s team criticized as restrictive to innovation and economic freedom.
State-level initiatives are already emerging in parallel with federal action. Several states are considering their own Bitcoin reserve legislation, while Senator Cynthia Lummis has introduced the “Bitcoin Act” in the Senate to further explore national cryptocurrency reserves.
Additional executive orders may be forthcoming. Industry observers anticipate potential action on several key issues, including the possible repeal of the SEC’s SAB 121 rule, which currently discourages American banks from holding cryptocurrency. While Congress previously repealed this rule, former President Biden’s veto kept it in place.
The administration may also address the SEC’s exchange rule affecting decentralized finance projects and could direct federal agencies, including the State Department, to prioritize crypto innovation as a national objective.
These changes come as Bitcoin’s price reached $106,000 on Thursday, with market observers attributing some of the increase to optimism about potential government initiatives under the Trump administration.
The working group’s formation marks the beginning of a new phase in U.S. cryptocurrency policy, with further developments expected as the administration continues to implement its digital asset strategy.
