Author: Jinse Finance
On January 23, 2025, US President Trump issued the first crypto executive order. The 10 key points are as follows:
1. Protect and promote the ability of individual citizens and the private sector to access and use public blockchains
2. US citizens can develop and deploy software, participate in mining and validation, conduct transactions, and self-custody digital assets
3. Promote and protect the sovereignty of the US dollar, and promote the development and growth of US dollar-backed stablecoins
4. Protect and promote fair and open access to banking services for all law-abiding citizens and private sector entities
5. Provide regulatory clarity and certainty
6. Protect Americans from the risks of CBDCs, and prohibit the establishment, issuance, circulation, and use of CBDCs within US jurisdiction
7. Revoke Executive Order 14067 "Ensuring Responsible Development of Digital Assets" and the Treasury Department's "Digital Assets International Engagement Framework"
8. Establish a President's Digital Asset Markets Working Group
9. Propose a federal regulatory framework to manage the issuance and operation of digital assets (including stablecoins) in the US
10. Assess the feasibility of establishing and maintaining a national digital asset reserve, and propose standards for establishing such a reserve
The full text of the executive order is as follows:
Strengthening America's Leadership in Digital Financial Technology
By the authority vested in me as President by the Constitution and the laws of the United States of America, and in order to promote the United States' leadership in the digital asset and financial technology sectors while protecting economic freedom, I hereby order as follows:
Section 1. Purpose and Policy
(a) The digital asset industry plays a critical role in innovation, economic development, and the United States' international leadership. Therefore, it is the policy of my Administration to support the responsible growth and use of digital assets, blockchain technology, and related technologies across all economic sectors, including:
(i) Protecting and promoting the ability of individual citizens and private sector entities to access and use open, public blockchain networks, including the ability to develop and deploy software, participate in mining and validation, transact without illegal surveillance, and maintain self-custody of digital assets;
(ii) Promoting and protecting the sovereignty of the US dollar, including by taking actions to promote the development and growth of lawful US dollar-backed stablecoins globally;
(iii) Protecting and promoting fair and open access to banking services for all law-abiding citizens and private sector entities;
(iv) Providing regulatory clarity and certainty based on technology-neutral regulation, frameworks that consider emerging technologies, transparent decision-making, and clear jurisdictional boundaries, all of which are critical to supporting a vibrant and inclusive digital economy and innovation in digital assets, permissionless blockchain, and distributed ledger technology;
(v) Taking measures to protect Americans from the risks of Central Bank Digital Currencies (CBDCs), which threaten financial system stability, individual privacy, and US sovereignty, including by prohibiting the establishment, issuance, circulation, and use of CBDCs within US jurisdiction.
Section 2. Definitions
(a) The term "digital asset" as used in this order refers to any digital representation of value recorded on a distributed ledger, including cryptocurrencies, digital tokens, and stablecoins.
(b) The term "blockchain" refers to any technology that: (i) Distributes data across a network, establishing a verified public ledger of transactions or information among network participants; (ii) Uses cryptography to link data in a way that maintains the integrity of the public ledger and executes other functions; (iii) Distributes updates to the public ledger state and any other functions in an automated manner to network participants; and (iv) Is composed of open-source code that is publicly available.
(c) "Central Bank Digital Currency" (CBDC) refers to a digital currency or digital form of money issued by a central bank as a direct liability of the central bank.
Section 3. Revocation of Executive Order 14067 and Treasury Framework
(a) Executive Order 14067 of March 9, 2022 (Ensuring Responsible Development of Digital Assets) is hereby revoked.
(b) The Secretary of the Treasury is directed to immediately revoke the "Digital Assets International Engagement Framework" issued by the Department of the Treasury on July 7, 2022.
(c) All policies, directives, and guidance issued pursuant to Executive Order 14067 and the Treasury Department's "Digital Assets International Engagement Framework" are hereby revoked or, at the discretion of the Secretary of the Treasury, rescinded to the extent they are inconsistent with the provisions of this order.
(d) The Secretary of the Treasury shall take all appropriate measures to ensure compliance with the policies set forth in this order.
Section 4. Establishment of the President's Digital Asset Markets Working Group
(a) There is hereby established, within the National Economic Council, the President's Digital Asset Markets Working Group (the "Working Group"). The Working Group shall be chaired by the Special Assistant to the President for Artificial Intelligence and Crypto (the "Chair"). In addition to the Chair, the Working Group shall include the following officials or their designees:
(i) The Secretary of the Treasury; (ii) The Attorney General; (iii) The Secretary of Commerce; (iv) The Secretary of Homeland Security; (v) The Director of the Office of Management and Budget; (vi) The Assistant to the President for National Security Affairs; (vii) The Assistant to the President for Economic Policy (APEP); (viii) The Assistant to the President for Science and Technology; (ix) The Homeland Security Advisor; (x) The Chair of the Securities and Exchange Commission; and (xi) The Chair of the Commodity Futures Trading Commission.
(xii) The Chair may, as appropriate and in accordance with applicable law, invite the heads of other executive departments and agencies (agencies) or other senior officials from the Executive Office of the President to participate in Working Group meetings based on the relevance of their expertise and responsibilities.
(b) Within 30 days of the date of this order, the Department of the Treasury, the Department of Justice, the Securities and Exchange Commission, and other relevant agencies (whose heads are included in the Working Group) shall identify all regulations, guidance documents, orders, or other actions that impact the digital asset sector. Within 60 days of the date of this order, each agency shall submit recommendations to the Chair on whether each identified regulation, guidance document, order, or other action should be rescinded or modified, or, for non-regulatory actions, whether they should be codified in regulation.
(c) Within 180 days of the date of this order, the Working Group shall submit a report through APEP to the President that provides regulatory and legislative recommendations to advance the policies set forth in this order. In particular, the report shall focus on:
(i) The Working Group shall propose a federal regulatory framework to manage the issuance and operation of digital assets (including stablecoins) in the United States. The Working Group's report should consider provisions for market structure, oversight, consumer protection, and risk management.
(ii) The Working Group shall assess the feasibility of establishing and maintaining a national digital asset reserve, and propose standards for establishing such a reserve, which may be composed of cryptocurrencies lawfully seized by the federal government through law enforcement efforts.
(d) The Chair shall designate a Working Group Executive Director to coordinate the day-to-day work of the Working Group. On matters involving national security, the Working Group shall consult with the National Security Council.
(e) To the extent appropriate and consistent with applicable law, the Working Group shall hold public hearings and solicit personal expertise from leaders in the digital asset and digital markets.
Section 5. Prohibition on Central Bank Digital Currencies.
(a) Except as required by law, agencies are hereby prohibited from taking any action to establish, issue, or promote CBDCs within or outside of the United States.
(b) Except as required by law, any agency plans or initiatives related to the creation of CBDCs within US jurisdiction shall be immediately terminated, and no further action shall be taken to develop or implement such plans or initiatives.
Section 6. Severability
(a) If any provision of this order or the application of such provision to any person or circumstance is held to be invalid, the remainder of this order and the application of such provision to any other person or circumstance shall not be affected.
Section 7. General Provisions
(a) Nothing in this order shall be construed to impair or otherwise affect:
(i) The authority granted by law to an executive department, agency, or the head thereof; or
(ii) The functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) The implementation of this order shall be in accordance with applicable law and subject to the availability of appropriations. (c) This order is not intended to and does not create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person. The White House, January 23, 2025.
