President Trump Creates Crypto Working Group, Bans Digital Dollar

US President Donald Trump has signed an executive order to create a cryptocurrency working group tasked with proposing new digital asset regulations and “evaluating the potential creation and maintenance of a national digital asset stockpile.” Additionally, he has banned the creation of a central bank digital currency (CBDC) in the country, which might compete with existing cryptocurrencies.

The working group will include the Treasury Secretary, the chairs of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), along with other agency heads. It will also explore a regulatory framework for stablecoins, which are pegged to fiat currencies.

US Progresses Towards Crypto Regulations

With this latest order, President Trump has taken steps toward fulfilling his campaign promise to overhaul US cryptocurrency policy promptly.

The executive order also mandates proper banking services for cryptocurrency companies. While there is no official banking ban on cryptocurrency firms, many industry participants have reported being denied banking services on multiple occasions.

A prior media report suggested that the Trump administration might assign the CFTC as the primary regulatory authority for cryptocurrencies in the US, effectively sidelining the SEC, which currently handles most enforcement actions against crypto companies.

🚨 NOW: Donald Trump signs an executive order to help make “America the world the capital of crypto.” pic.twitter.com/UELJCDvGeb

Crypto Leaders Taking Over

Following President Trump’s assumption of office, the former SEC and CFTC Chairs stepped down. They have been replaced by interim leaders who are perceived as more crypto-friendly. Caroline Pham, the Acting CFTC Chair, even appointed a specialist to lead the agency’s efforts on “crypto, decentralised finance (DeFi), and other digital assets.”

Despite the growing adoption of cryptocurrencies in the US, the country still lacks comprehensive policies and regulations for the sector. Coinbase, a major crypto exchange, even filed a lawsuit against the SEC over the lack of clarity in its crypto policies. With President Trump’s approach, it seems the country is moving closer to establishing a proper crypto regulatory framework.

Last year, the European Union introduced the Markets in Crypto-Assets Regulation (MiCA), becoming the first major jurisdiction to implement a comprehensive crypto regulatory framework.