US President Donald Trump Signs Executive Order Banning CBDCs and Regulating Crypto

January 24, 2025 by Sheila

• Trump’s executive order bans CBDCs, revoking Biden’s 2022 crypto framework entirely.
• New U.S. crypto task force to propose regulations and evaluate a Bitcoin reserve.
• Trump’s CBDC ban could reshape global digital currency strategies, experts say.

President Donald Trump has issued an executive order banning the creation, issuance, and use of central bank digital currencies (CBDCs) in the United States. This directive also revokes all previous orders and frameworks issued by the Biden administration and sets a new course for the country’s digital currency-related policies.

Trump’s Crypto Working Group to Define Digital Asset Policies

The executive order also describes creating a presidential working group responsible for creating a regulatory structure for digital assets, including stablecoins. This group will comprise important officials from government departments, such as the treasury secretary, the attorney general, and the heads of financial regulatory bodies, such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

US President Donald Trump Signs Executive Order Banning CBDCs and Regulating Crypto 3

One of the group’s main objectives is to assess the opportunities for building a strategic digital asset stockpile. The order stated that the stockpile could consist of cryptocurrencies that the federal government had legally confiscated. The working group is expected to make recommendations on consumer protection, market monitoring, and risk management in the digital asset space.

Moreover, the EO seeks to safeguard banking services for cryptocurrency companies, which is important given the industry’s current issues regarding limited access to financial services.

Prohibiting CBDCs: A Fulfilled Campaign Promise

In his campaign, Trump issued an order directly banning federal agencies from creating or promoting CBDCs. The text states that all existing plans or projects connected with CBDCs within the U.S. government must cease.

The decision to ban CBDCs supports Trump’s stance of focusing on decentralized cryptocurrencies such as Bitcoin and ensuring the United States’ sovereignty over monetary systems. This decision has been met with enthusiasm within cryptocurrencies, as it is seen as a further attempt to encourage innovation and financial freedom.

Nevertheless, international experts expect that the US ban will affect the CBDC projects globally. Although China and the European Union are still working on CBDCs for retail and wholesale use, the ban in the US might hold back the progress of retail CBDCs.

National Strategic Bitcoin Reserve Under Review

The EO also includes an option for forming a Strategic Bitcoin Reserve, an idea Trump had previously presented during the campaign. The reserve would use Bitcoin held by the government from seizures and hacks, cementing the currency’s position in the digital economy.

The Trump administration has suggested that this reserve may be useful in the long term, for instance, for financial stability and protection against inflation. Although the concept is still under consideration, the EO intends to move digital assets into the national economic plan.

This executive order is an important change in the United States’ approach to cryptocurrencies, focusing on growth, rules, and strategy for digital finance. Top executives and government officials are still expecting the details of the working group’s recommendations and plans for their execution.