In a landmark move for the cryptocurrency industry, U.S. President Donald Trump has signed an executive order prohibiting the development and issue of central bank digital currencies (CBDCs). This measure fulfills one of Trump’s campaign promises and is his first significant step toward cryptocurrency during his second term in government.
The executive order prohibits any actions relating to the establishment or promotion of CBDCs in the United States or abroad, except as permitted by law. The mandate also requires an immediate halt to any ongoing CBDC development initiatives.In addition to prohibiting CBDCs, the directive creates a new working group charged with developing a complete regulatory framework for digital assets, including stablecoins. The group will concentrate on market structure, governance, consumer protection, and risk management in the digital asset industry. One of the working group’s primary goals is to investigate the establishment and management of a national digital asset stockpile, which may potentially consist of cryptocurrencies lawfully acquired by the federal government.
The executive order reflects Trump’s opinion that the United States should promote a private-sector-led digital asset ecosystem that provides alternatives to government-backed digital currencies. We expect this move to significantly influence the future of digital currency legislation in the United States and the global cryptocurrency environment.
