In a significant move for the digital financial sector, US President Donald Trump has signed an executive order (EO) titled “Strengthening American Leadership in Digital Financial Technology.” The executive order introduces several key provisions, including a ban on the creation and issuance of a central bank digital currency (CBDC) in the United States, while also establishing measures to regulate digital assets such as cryptocurrencies and stablecoins.
Ban on Central Bank Digital Currency (CBDC)
One of the central aspects of this executive order is the official prohibition on the creation of a CBDC in the United States. The EO defines a CBDC as “a form of digital money or monetary value, denominated in the national unit of account, that is a direct liability of the central bank.” The order states that, “except to the extent required by law, agencies are hereby prohibited from undertaking any action to establish, issue, or promote CBDCs” both within the US and abroad. Additionally, any ongoing plans or initiatives related to CBDC creation will be immediately halted.
Creation of a Federal Digital Assets Regulatory Framework
The executive order also sets up a presidential working group tasked with developing a federal regulatory framework for digital assets, including stablecoins. The group’s responsibilities will include evaluating the establishment of a national digital assets stockpile. The working group’s report will address critical areas such as market structure, oversight, consumer protection, and risk management in the digital asset space.
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The stockpile will focus on cryptocurrencies seized by the federal government, with a potential emphasis on Bitcoin. This aligns with President Trump’s previous pledge to create a strategic national Bitcoin reserve, using Bitcoin seized from law enforcement efforts. According to Arkham Intelligence data, the U.S. currently holds 198,109 Bitcoin, valued at over $20.1 billion.
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During the Bitcoin 2024 Conference in Nashville, President Trump expressed his commitment to creating a national strategic Bitcoin stockpile.
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