Trump's Bold Crypto Move: Banning CBDCs and Building a National Digital Asset Reserve.
In a groundbreaking executive order on Thursday, former President Donald Trump unveiled a sweeping overhaul of U.S. cryptocurrency policy. The move includes a ban on central bank digital currencies (CBDCs) and a directive to evaluate the creation of a “national digital asset stockpile.”
A Major Shift in U.S. Crypto Policy
The executive order, now publicly available on the White House website, establishes a new “working group on digital asset markets” composed of leading economic, law enforcement, and national security officials. This represents a dramatic pivot for Trump, who was previously a staunch crypto skeptic but has since embraced the sector to gain favor with its advocates.
While the crypto industry had high hopes for the creation of the stockpile, the order’s wording disappointed some proponents. It indicates that the stockpile could primarily consist of cryptocurrency seized by federal law enforcement rather than purchased outright by the U.S. government.
Market Reaction
Following the announcement, major cryptocurrencies experienced a dip. Bitcoin, XRP, and Solana each fell by over 2%, while Ethereum dropped more than 1%. This reaction reflects the market’s cautious sentiment regarding government intervention in crypto.
Promises Made, Promises Kept
Trump’s executive order aligns closely with his campaign promises to the crypto community. In a notable policy shift, he had previously described Bitcoin as “a scam against the dollar” in 2021 but began courting crypto enthusiasts during his 2024 campaign. At a Bitcoin conference last year, he pledged to:
- Block the development of CBDCs.
- Pardon high-profile crypto figure Ross Ulbricht.
- Support self-custody of digital assets.
- Draft pro-crypto laws.
- Retain Bitcoin seized by the government rather than liquidate it.
On Tuesday, Trump fulfilled one of these promises by granting an unconditional pardon to Ulbricht, the founder of Silk Road.
What Comes Next?
The executive order mandates two key deadlines:
- Within 60 days, agencies such as the Department of the Treasury and the Securities and Exchange Commission (SEC) must propose changes to existing laws affecting digital assets.
- Within 180 days, the newly established working group must present a federal regulatory framework governing the issuance and operation of digital assets.
Notably, the working group will be led by David Sacks, whom Trump has appointed as his “crypto and AI czar.”
A Pro-Crypto Stance
The order also rescinds several crypto-critical policies from the Biden administration and affirms the government’s support for self-custody and fair access to banking services for crypto holders. Senator Cynthia Lummis of Wyoming praised the move, stating, “President Trump has promised to make this administration the most pro-digital asset in U.S. history, and he’s already delivering.”
BitGalactic’s Take
From the perspective of BitGalactic, this executive order signals a calculated yet polarizing gamble. While banning CBDCs may appeal to those wary of government overreach, it raises questions about the U.S.’s ability to compete in a world where nations like China are advancing their CBDC programs.
The focus on a national digital asset stockpile—primarily sourced from seized crypto—could set a troubling precedent for how governments handle private digital assets. Although the intent may be to strengthen national security and stabilize markets, it risks undermining trust in the government’s role within the decentralized ecosystem.
As Trump positions himself as a crypto ally, the industry must grapple with the long-term implications of this strategy. Will this push the U.S. into crypto leadership, or will the lack of support for CBDCs hinder its global competitiveness? Only time will tell.
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