Three days into his second term, President Trump signed an executive order creating a clear regulatory framework for digital financial technologies while explicitly banning central bank digital currencies (CBDCs) within U.S. jurisdiction.
The directive, titled “Strengthening American Leadership in Digital Financial Technology,” establishes a presidential working group chaired by former PayPal executive David Sacks. The group will examine digital asset markets, identify regulatory gaps, and consider the creation of a strategic national digital assets stockpile to support financial resilience and innovation.
The order encourages development of dollar-backed stablecoins and broader blockchain innovation, while rescinding certain Biden-era policies that the administration views as overly restrictive to economic and technological freedom. The move reflects campaign commitments to position the United States as a global hub for cryptocurrency and blockchain development, and follows a period of strong market performance for cryptocurrencies.
In the text of the order, “digital assets” is defined broadly to include cryptocurrencies, digital tokens, and stablecoins. The order explicitly prohibits the issuance or use of CBDCs within U.S. jurisdiction, citing concerns over privacy, individual liberty, and the risks of centralized digital currency systems.
