On January 23, 2025, the President of the United States issued a far-reaching executive order aimed at strengthening the country’s leadership in digital financial technology. This order is designed to promote the responsible use of digital assets and blockchain technologies while safeguarding economic freedom and individual rights. At its core, the directive aims to position the U.S. as a global leader in digital innovation, particularly regarding cryptocurrencies and stablecoins. Here are the central points of this groundbreaking executive action.
- Promoting the Growth and Use of Digital Assets
A central goal of the executive order is to foster the growth of digital assets, blockchain technology, and related technologies. The President emphasizes that these technologies play a crucial role in innovation and economic development, as well as in strengthening the U.S.’s international leadership. Special attention is given to protecting access to public blockchain networks for individuals and private entities. This includes the right to develop and deploy software, participate in mining and validation, conduct transactions without unlawful censorship, and maintain self-custody of digital assets. - Protecting the U.S. Dollar and Promoting Stablecoins
Another key aspect of the executive order is the protection and promotion of the U.S. dollar, particularly through the development of dollar-backed stablecoins. The U.S. is expected to take a leading role globally in the stablecoin sector, with a focus on their legal legitimacy and responsible use. - Regulatory Clarity and Protection of Financial Freedom
The order calls for the creation of clear, technology-neutral regulatory frameworks that account for emerging technologies and enable transparent decision-making. The goal is to support a vibrant and inclusive digital economy. At the same time, the order aims to establish a regulatory structure for digital assets, including stablecoins and cryptocurrencies, addressing market structure, oversight, consumer protection, and risk management. - Prohibition of Central Bank Digital Currencies (CBDCs)
One of the most controversial points of the executive order is the explicit prohibition of Central Bank Digital Currencies (CBDCs) within the U.S. market. The order stresses that CBDCs could potentially threaten the stability of the financial system, individual privacy, and the sovereignty of the United States. As a result, all ongoing projects related to the development of a CBDC within the U.S. are to be immediately halted. - Establishment of the President’s Working Group on Digital Asset Markets
To implement the goals outlined in the executive order, a new Working Group on Digital Asset Markets is established within the National Economic Council. This group, which will include high-level officials from the Treasury, Justice, Commerce, and Homeland Security Departments, will focus on crafting a federal regulatory framework for digital assets. The working group will also consider the creation of a national digital asset stockpile, potentially made up of cryptocurrencies lawfully seized by the U.S. government. - Revocation and Overhaul of Existing Regulations
The executive order revokes the previous Executive Order 14067, issued on March 9, 2022, which focused on the responsible development of digital assets. In addition, all existing guidance and regulations that conflict with the new directives will be revised or rescinded to ensure a coherent and forward-thinking regulatory approach.
Conclusion
This executive order marks a decisive step toward a clear, regulated, and future-oriented use of digital assets in the U.S. It not only signals the U.S.’s intention to lead the global digital financial technology market but also ensures that national interests regarding security, privacy, and economic sovereignty are protected. The coming months and years will reveal the impact of these measures on the digital economy and the global financial landscape.