Written by: Golden Finance
On January 23, 2025, US President Trump issued the first encryption executive order. The 10 main points are as follows:
1. Protect and promote the ability of individual citizens and the private sector to access and use public chains
2. U.S. citizens can develop and deploy software, participate in mining and verification, conduct transactions, and self-custody of digital assets
3. Promote and protect the sovereignty of the U.S. dollar, and promote the development and growth of stablecoins backed by the U.S. dollar
4. Protect and promote fair and open access to banking services by all law-abiding citizens and private sector entities
5. Provide regulatory clarity and certainty
6. Protect Americans from the risks of CBDC and prohibit the establishment, issuance, circulation and use of CBDC within the jurisdiction of the United States
7. Revoke Executive Order No. 14067 "Ensuring the Responsible Development of Digital Assets" and the Treasury Department's "International Engagement Framework for Digital Assets"
8. Establish a Presidential Digital Asset Market Working Group
9. Propose a federal regulatory framework to govern the issuance and operation of digital assets, including stablecoins, in the United States
10. Evaluate the feasibility of establishing and maintaining a national digital asset reserve, and propose criteria for establishing such a reserve
The full text of the executive order is as follows:
Strengthening American Leadership in Digital Financial Technology
By the authority vested in me as President by the Constitution and the laws of the United States, and in order to promote American leadership in digital assets and financial technologies while protecting economic freedom, I hereby order the following:
Section 1. Purpose and Policy
(a) The digital asset industry plays a vital role in American innovation and economic development and in our country’s international leadership. It is therefore the policy of this Administration to support the responsible growth and use of digital assets, blockchain technology, and related technologies in all sectors of the economy, including by:
(i) protecting and promoting the ability of individual citizens and private sector entities to access and use open public blockchain networks without persecution, including the ability to develop and deploy software, participate in mining and validating, transact with others without unlawful censorship, and maintain self-custody of digital assets;
(ii) (iii) protect and promote fair and open access to banking services for all law-abiding citizens and private sector entities; (iv) provide regulatory clarity and certainty based on technology-neutral regulations, frameworks that take into account emerging technologies, transparent decision-making, and clear jurisdictional boundaries, all of which are critical to supporting a vibrant and inclusive digital economy and innovation in digital assets, permissionless blockchains, and distributed ledger technologies; and (v) take steps to protect Americans from the risks of central bank digital currencies (CBDCs) that threaten the stability of the financial system, individual privacy, and the sovereignty of the United States, including by prohibiting the establishment, issuance, circulation, and use of CBDCs within the jurisdiction of the United States. SECTION 2. DEFINITIONS. (a) For purposes of this order, the term “digital asset” means any digital representation of value recorded on a distributed ledger, including cryptocurrencies, digital tokens, and stablecoins.
(b) The term “blockchain” means any technology involving data that:
(i) is shared within a network to establish a public ledger of verified transactions or information between network participants;
(ii) is linked using cryptographic techniques to maintain the integrity of the public ledger and perform other functions;
(iii) is distributed to network participants in an automated manner to simultaneously update the state of the public ledger and any other functions of network participants; and
(iv) consists of publicly available source code.
(c) “Central Bank Digital Currency” means a digital currency or form of monetary value denominated in a national unit of account that is a direct liability of the central bank.
Section 3. Revocation of Executive Order 14067 and Treasury Framework
(a) Executive Order 14067 of March 9, 2022 (Ensuring the Responsible Development of Digital Assets) is hereby rescinded.
(b) Directs the Secretary of the Treasury to immediately revoke the July 7, 2022, Framework for International Engagement in Digital Assets issued by the Department of the Treasury.
(c) All policies, directives, and guidance issued pursuant to Executive Order 14067 and the Department of the Treasury’s Framework for International Engagement in Digital Assets that are inconsistent with the provisions of this order are hereby rescinded or, at the discretion of the Secretary of the Treasury.
(d) The Secretary of the Treasury shall take all appropriate steps to ensure compliance with the policies set forth in this order.
SECTION 4. ESTABLISHMENT OF THE PRESIDENTIAL TASK FOR DIGITAL ASSET MARKETS
(a) There is hereby established within the National Economic Council a Presidential Task Force on Digital Asset Markets (the Task Force). The Task Force shall be chaired by the Special Advisor on Artificial Intelligence and Cryptography (the Chair). In addition to the Chair, the Working Group shall include the following officials or their designees:
(i) the Secretary of the Treasury;
(ii) the Attorney General;
(iii) the Secretary of Commerce;
(iv) the Secretary of Homeland Security;
(v) the Director of the Office of Management and Budget;
(vi) the Assistant to the President for National Security Affairs;
(vii) the Assistant to the President for National Economic Policy (APEP);
(viii) the Assistant to the President for Science and Technology;
(ix) the Advisor for Homeland Security;
(x) the Chairman of the Securities and Exchange Commission; and
(xi) the Chairman of the Commodity Futures Trading Commission.
(xii) As appropriate and consistent with applicable law, the Chair may invite the heads of other executive departments and agencies (agencies) or other senior officials within the Executive Office of the President to participate in meetings of the Working Group, based on their expertise and relevant responsibilities.
(b) Within 30 days of the date of this order, the Treasury, Justice, Securities and Exchange Commission, and other relevant agencies (the heads of which are included in the Working Group) shall identify all regulations, guidance documents, orders, or other items that affect the digital asset sector. Within 60 days of the date of this order, each agency shall submit to the Chairman a recommendation as to whether each identified regulation, guidance document, order, or other item should be rescinded or modified or, with respect to items other than regulations, whether it should be adopted in regulation.
(c) Within 180 days of the date of this order, the Working Group shall submit to the President, through the APEP, a report that shall propose regulatory and legislative recommendations to advance the policies identified in this order. In particular, the report shall focus on the following:
(i) The Working Group shall propose a federal regulatory framework to govern the issuance and operation of digital assets, including stablecoins, in the United States. The Working Group’s report shall consider provisions for market structure, oversight, consumer protection, and risk management.
(ii) The Working Group shall evaluate the possibility of establishing and maintaining a national digital asset reserve and propose criteria for establishing such a reserve, which may be derived from cryptocurrency lawfully seized by the Federal Government through law enforcement efforts.
(d) The Chair shall designate an Executive Director of the Working Group to coordinate the day-to-day work of the Working Group. The Working Group shall consult with the National Security Council on matters involving national security.
(e) As appropriate and consistent with law, the Working Group shall hold public hearings and receive individual expertise from leaders in digital assets and digital markets.
SECTION 5. PROHIBITION OF CENTRAL BANK DIGITAL CURRENCY.
(a) Except to the extent required by law, agencies are hereby prohibited from taking any action within or outside the United States to establish, issue, or promote a CBDC.
(b) Except to the extent required by law, any program or initiative underway by any agency related to the creation of a CBDC within the jurisdiction of the United States shall be immediately terminated, and no further action may be taken to develop or implement such a program or initiative.
SECTION 6. SEVERITY OF PROVISIONS
(a) If any provision of this order or the application of any provision to any person or circumstance is held invalid, the remainder of this order and the application of its provisions to any other person or circumstance shall not be affected thereby.
SECTION 7. GENERAL PROVISIONS
(a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the powers conferred by law on executive departments, agencies, or their heads; or
(ii) the functions of the Director of the Office of Management and Budget with respect to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to and does not create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
The White House January 23, 2025
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