Trump Signs Executive Order for Cryptocurrency Advancement

On January 23, 2025, U.S. President Donald Trump signed an executive order in the Oval Office to enhance the framework for cryptocurrencies within the United States. This significant move aims to establish the groundwork for potentially creating a national digital asset stockpile.

Accompanying Trump during the signing was David Sacks, a well-known venture capitalist who has taken on the role of Trump’s crypto and artificial intelligence advisor. The executive order emphasizes the importance of the digital asset industry in fostering innovation and reinforcing America's economic growth and international standing.

During his first term, Trump expressed skepticism towards cryptocurrencies, but this perspective shifted significantly during his campaign for a second term, when he began to receive substantial financial support from the crypto community. In the 2024 election cycle, contributions from crypto investors and firms accounted for nearly half of corporate donations, with some giving millions to aid Trump’s campaign.

The executive order mainly concentrates on formulating regulations and the development of cryptocurrency technologies in the U.S. A critical aspect of this initiative is the establishment of a working group that will explore the potential for a national digital asset stockpile. This stockpile may include cryptocurrencies legally seized by the federal government during law enforcement operations.

Historically, the U.S. Marshals Service has held auctions for seized cryptocurrencies like bitcoin, ether, and litecoin. Trump, while campaigning, promised to retain federal government holdings of bitcoin, stating, "If I am elected, it will be the policy of my administration to keep 100% of all the bitcoin the U.S. government currently holds or acquires into the future." However, the current executive order does not specifically mention bitcoin.

The document outlines several other priorities for the digital asset sector, including safeguarding individuals and companies that utilize blockchain networks from potential governmental interference. It stipulates that developers and miners should be allowed to freely create and deploy software, as well as participate in mining activities managing the security of the bitcoin network.

Additionally, Trump has voiced his commitment to defending the rights of individuals who opt for self-custody of their digital assets, meaning they choose not to rely on centralized exchanges, like Coinbase, for holding their tokens. Instead, these individuals use personal wallets that may be exempt from Internal Revenue Service (IRS) oversight.

The executive order also encourages the promotion of the U.S. dollar's sovereignty while supporting the development of legitimate, dollar-backed stablecoins on a global scale.

Since taking office, Trump has focused on appointing key government positions with individuals who favor the cryptocurrency sector. Paul Atkins has been nominated to lead the Securities and Exchange Commission (SEC). Atkins is known for advocating pro-market policies and resisting heavy regulations—an approach in stark contrast to his predecessor Gary Gensler, who faced criticism for his stringent regulation efforts in the crypto space.

Earlier this week, the SEC declared the formation of a new "crypto task force," which will be led by Commissioner Hester Peirce. Peirce, often referred to as “Crypto Mom” for her favorable stance on digital currencies, has consistently advocated for a regulatory framework that nurtures innovation.

Trump has also appointed Scott Bessent, a hedge fund manager supportive of cryptocurrencies, to head the Treasury Department. Bessent's involvement in the recent Crypto Ball event in Washington highlighted the administration's vision to establish the U.S. as a frontrunner in digital asset technological advancement.

During a recent event addressing a crowded audience, Sacks declared, "The war on crypto is over," heralding a new era for American innovation in the sector.

Trump, Cryptocurrency, ExecutiveOrder