Executive order on future of Crypto Currency
Introduction
President Trump’s January 23, 2025, Executive Order on digital assets aims to fundamentally reshape U.S. crypto policy with three primary objectives:
Regulatory Clarity & Private Sector Growth
The order mandates a 180-day timeline to establish a federal regulatory framework, prioritizing:
Technology-neutral regulations to accommodate blockchain innovation without stifling development
Jurisdictional boundary definitions between agencies like the SEC and CFTC
Rescission of restrictive Biden-era policies, including the repeal of SEC Staff Accounting Bulletin 121 that blocked banks from crypto custody
This shift replaces the previous “regulation by enforcement” approach with regulatory “safe harbors” for compliant firms.
Dollar Hegemony Through Stablecoins
The administration seeks to reinforce USD dominance by:
Promoting 100% dollar-backed stablecoins as global settlement instruments
Requiring monthly audits and criminal penalties for false reserve reporting
Positioning USD stablecoins as alternatives to potential CBDC systems
Blocking CBDC Development
The order institutes a comprehensive CBDC prohibition:
Bars all federal agencies from CBDC research/development
Revokes Biden’s 2022 CBDC exploration mandate
Declares CBDCs a threat to financial privacy and dollar sovereignty
Strategic Endgame
The executive order lays groundwork for:
Onshoring crypto innovation through tax incentives and banking access
Global financial leadership via dollar-pegged stablecoin adoption
Depoliticized monetary system through permissionless blockchain infrastructure
Strategic crypto reserves (separate from the $10B sovereign fund proposal) to influence markets
Conclusion
While facing skepticism about its ability to curb bad actors, the order represents the most comprehensive pro-crypto shift in U.S. regulatory history, aiming to capture an estimated $1.5T crypto market while countering China’s digital yuan ambitions. Implementation now depends on agency rulemaking and Congressional action on pending stablecoin legislation.




