The Trump White House has issued a flurry of executive orders, including one placing crypto at the … [+]
The second Trump administration has come into office with a blistering start, with a flurry of executive orders, proclamations, and memos that are influencing almost every aspect of domestic policy, foreign relationships, and the economy; this includes the crypto sector. Within the first days of returning to office, President Trump pardoned Ross Ulbricht – the founder of Silk Road –keeping a promise made on the campaign trail to the crypto community.
In addition, the SEC – under acting Chairperson Mark Uyeda – has announced the creation of a new crypto task force charged with the creation of comprehensive and clear regulatory framework for cryptoassets. This task force has already rolled back the controversial and unpopular SAB 121 (the revocation of which had bipartisan support in Congress during 2024), which is seen as a major win for the sector. These actions denote a rapid pivot from the SEC under former chair Gensler, who many in the sector saw as anti-crypto and waging a campaign to stifle the asset class in the U.S.
Even though these two (2) headlines are certainly noteworthy and are being celebrated by crypto investors and advocate communities, one action overshadows almost all others; the long awaited executive order on crypto. Expectations were high for this policy step, and in the immediate aftermath of issuance differing corners of the internet were equally pleased and displeased by the E.O. That said, the fact that such an order was issued solidifies crypto as a priority at the federal level and opens the door for further innovation, making it worthy of further analysis.
Let’s break down the crypto executive order, as well as what other policy issues will be top of mind for crypto investors and policy advocates as 2025 gets underway.
Crypto Executive Order Takeaways
The fact that the White House issued an executive order that supports crypto innovation and growth in the United States should already be seen as substantial progress when compared to the attitude and effects of the previous administration. It is important to note that despite the positive sentiment and optimism following the issuance of this order, the recommendations and timelines contained therein are just that, and are not going to mandate immediate change. With that said, several items in the order stand out as tailwinds for further investment, adoption, and growth of the crypto sector in the United States.
Some of the most important items outlined in the executive order include the establishment of a Presidential Working Group on Digital Asset Markets, which will be tasked with developing a federal regulatory framework governing digital assets (including stablecoins), and evaluate the creation of a strategic national digital asset stockpile; a pledge that generally received an enthusiastic response. This working group will be headed by David Sacks – AI & Crypto Czar – the Secretary of the Treasury and the Chairperson of the SEC with banking regulators pointedly not mentioned. Such exclusion was celebrated by crypto investors and entrepreneurs that had cited debanking efforts known as Operation Chokepoint 2.0 as a major obstacle to growth. Additionally the executive order prohibits agencies from undertaking efforts to establish or promote a CBDC as well as revoking the guidelines put forward by the previous administration.
In short, crypto has been elevated to a federal priority, a national digital asset stockpile is being explored, and CBDCs have been banned; while not a perfect and instantaneous solution, the executive order is one that signals much awaited progress in the eyes of the crypto community.
Strategic Bitcoin Reserves
One of the issues that remains partially unaddressed at this time is the likelihood of a strategic bitcoin reserve being established, and whether or not such a reserve is established first at the state level or federal level. In the executive order, bitcoin maximalists were quick to point out that the digital asset stockpile might very well include other cryptoassets than bitcoin, while other crypto advocates applauded the reality that such a stockpile is even on the executive agenda.
While then-candidate Trump did speak at Bitcoin 2024, made pronouncements and overtures to the bitcoin community, and has remained true to pro-crypto positions, the lack of bitcoin reserve specificity in the executive order seems worth digging into. While the executive order is vague in the mentioning of a digital asset stockpile this, although frustrating for some bitcoin-first advocates, makes sense from a strategic perspective. By avoiding being overly prescriptive in the executive order there remains room for those issues to be resolved legislatively; a stronger and harder to reverse position. Investors and advocates that expressed lukewarm support for the initiative should, however, be excited about another development that has less press coverage.
Senator Lummis (R-WY), a staunch advocate of bitcoin and whose office sponsored The BITCOIN Act, will be chairing the first ever Senate banking panel on digital assets. Executive orders make headlines, but legislative actions are by far the more secure and permanent option; bitcoin maximalists should be excited to have such pro-bitcoin Senator in a position of decision-making authority.
Meme Coins & Stablecoins
In the last few days prior to the inauguration, and riding high on the victory delivered at least partially by the support of the crypto community, organizations affiliated with President Trump issued meme coins for both the President and his wife, labeled $TRUMP and $MELANIA, respectively. As these coins followed the trajectory of many other meme coins, rising dramatically in price before retrenching just as quickly, lawmakers and members of the crypto community spoke out against the efforts. Opponents include Democratic lawmakers with calls for investigations into Trump and affiliated organizations, which hold approximately 80% of token supply and have booked billions in paper profits.
On the other hand, and in the same executive order that launched the working group that (among other actions) will explore a digital asset stockpile, the Trump administration also included a clause to promote dollar-backed stablecoins. This statement is in alignment with previous economic policies centered around maintain dollar dominance on the international scene while simultaneously embracing the benefits of tokenized payments. With the vast majority of dollar transactions already occurring in a virtual manner, the transition to tokenized dollars or stablecoins makes sense from a technological and economic perspective, without causing excessive disruption to the economy.
When all is said and done the executive order on crypto, when coupled with other regulatory and policy moves, should be seen as positive for the crypto community. President Trump is known for mercurial tendencies, and while the news has been beneficial to different members of the crypto community to date, investors and advocates alike should be aware that much work remains to be done.
