President Trump signs an executive order designed to support us.
On January 23, 2025, President Trump signed an executive order that sets out an executive order “to support the responsible growth and use of digital assets, blockchain technology and related technologies across all sectors of the economy.” The executive order focuses on several important priorities, including:
We will establish a working group for presidents on digital asset markets (working groups) within the National Economic Council. Restricts institutions from engaged in action in order to establish, issue or promote central bank digital currency. Promoting the growth of US dollar-backed stubcoin. Protect and promote access to banking services for crypto companies. It provides the crypto industry with clarity and certainty of regulations.
The working group will be chaired by venture capitalist David Sachs, who was previously elected President Trump as the administration’s “crypto and AI emperor.” It consists of 12 official members, including the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), secretaries of the Ministry of Treasury and Commerce, the Attorney General, and several other senior officials in the administration. Working groups can also seek input from other relevant federal agencies and stakeholders, including civilians who are “leaders in digital assets and digital markets.”
The executive order directs working groups to submit a report to President Trump within 180 days to propose a comprehensive federal regulatory framework for digital assets, including Stablecoins, and assesses the potential for a nationwide “stopping stockpile” of digital assets. President Trump has expressed interest in establishing a national Bitcoin Reserve, based in part on the federal government’s existing Bitcoin Holdings, and the executive order appears to be the first official step in creating its preparation.
The Working Group will also review regulations, guidance documents, orders, and other policy items affecting the crypto industry and submit recommendations to the Chair of the Working Group regarding whether these items should be cancelled, revised or maintained within 60 days. The executive order itself directly abolishes Executive Order 14067 of March 9, 2022, one aspect of the Biden administration’s crypto policy. In other words, the Trump administration appears to be moving quickly to remove perceived obstacles to the widespread use of blockchain technology and the development of the cryptocurrency market. By assessing the benefits of relevant regulations, guidance and policies affecting the crypto industry, the working group acts to promote the president’s agenda of generating actionable ideas to increase regulatory certainty and concrete guidance for market participants regarding road rules.
SEC forms a new cryptographic task force
On January 21, 2024, Acting SEC Chairman Mark T. Uyeda announced the creation of a new “Crypto 2.0” task force, which will be responsible for creating a clear cryptographic regulatory framework. Commissioner Hester Perth, who previously supported clarity in the regulations of the crypto industry, will lead the task force. An SEC press release, which released the task force, criticized the SEC’s previous “fresh and untested” legal interpretations and enforcement measures that sought to regulate Crypto “retrospectively and reactively.” The Crypto 2.0 task force instead aims to develop a “comprehensive and clear regulatory framework” for Crypto. It also helps the SEC “develops enforcement resources wisely.” The Task Force will work with other federal officials and agencies, including the CFTC, state and international regulatory authorities, to seek the input from stakeholders and the public.
Procrypt appointments in key roles
As the proverb says in Washington, “People is a policy.” President Trump’s major regulatory appointees have already begun shaping the administration’s crypto policy agenda, and are widely expected to continue to promote the president’s agenda and take a more uniform, industry-friendly approach to crypto regulations and enforcement than his Biden administration’s predecessors.
In the newly created role of “Crypto and Ai Czar,” David Sacks advises the president and guides the administration’s policy on issues related to cryptography. In a social media post announcing the choice, President Trump said Sack was positioned to implement the directive as chairman of the crypto working group, saying that Sach “has the clarity the crypto industry has been seeking and can thrive in the United States.” Sacks is a longtime advocate for the crypto industry and is expected to promote a more tolerant crypto policy that supports US innovation and industry growth.
As mentioned above, the SEC has already launched a new task force aimed at providing clear rules for roads to the crypto industry. Trump has also appointed Paul Atkins as Sec’s chairman. Former SEC commissioner Atkins has expressed support for the crypto industry and has served on an advisory board and advocacy groups promoting crypto and blockchain technology. He is expected to introduce well-known enforcement measures against crypto companies and their executives, and take a rather different approach to Biden administration SEC chairman Gary Genzler, who was criticized for “enforcement regulation.” Atkins expects to take a more uniform approach to regulating the crypto industry, including reviewing and reviewing the enforcement position the SEC took under former chairman Gensler. The SEC under Atkins may also seek to provide clear rules and guidance to the crypto industry through its work on the new Crypto 2.0 task force and participation in the Crypto Working Group.
On January 27, 2025, the Senate confirmed Scott Bescent. As Secretary of the Ministry of Finance. Bessent has been praised equally by the Crypto community. He occasionally expressed skepticism in contrast to Biden’s Treasury Secretary Janet Yellen. The crypto industryBessent is a supporter of the voices of blockchain technology and digital assets. Bescent is expected to shape US financial and economic policies and, like other senior Trump appointees, drive more measured surveillance of the crypto industry that drives growth and innovation.
Federal bank regulators are likely to revisit the Biden administration’s crypto policy
During the Biden administration, federal bank regulators closely vet banks’ arrangements between their own cryptocurrency activities and cryptocurrency companies. Most notably, the Federal Deposit Insurance Corporation (FDIC) recently issued so-called “suspension” letters to more than 20 banks, requiring that they had suspended encryption-related activities. The Federal Reserve System and Bureau of Currency (OCC) have similarly suggested that banks will obtain prior approval before they can engage or expand crypto-related activities. In many cases, these policies have had the effect of making it more difficult for crypto companies to access their banking systems and provide products and services to the public.
Under President Trump, new senior officials will hold leadership positions in their respective federal banking institutions. On January 20th, President Trump appointed Travis Hill as acting chairman of the FDIC, and Hill issued a statement outlining his short-term policy priorities, including adopting a “fintech partnership and a more transparent approach to digital assets and tokenization.” Hill also said the FDIC should consider issuing additional guidance that sets clear expectations on how banks will be involved in crypto-related activities. Additionally, Michelle Bowman, a leading candidate to be appointed vice-chairman for overseeing the Federal Reserve, has also expressed support for clarity and transparency in overseeing regulatory banks’ crypto-related activities.
The executive order specifies the crypto industry’s “fair and open access to banking services” and particularly important priorities. The Trump Management Bank’s regulators hope that banks will engage in crypto-related activities (such as providing custody services) and provide a clearer framework for them to partner with crypto companies to promote the delivery of crypto products and services. These officials shape the administration’s overall crypto policy and play an important role in developing a comprehensive regulatory framework.
Congress is likely to consider cryptographic laws
French Hill, chairman of the House Financial Services Committee and Tim Scott, chairman of the Senate Banking Committee, expressed his interest in passing financial innovation and technology in the 21st Century Act (FIT21). The bill classifies cryptocurrencies as commodities and gives CFTC exclusive authority over the cash or spot markets of digital goods., SEC authority when digital assets are associated with non-decentralized blockchains. While it remains uncertain whether Congress will enact this law, there is a clear interest in Congress in taking action to clarify the regulations on code.
Companies still have to fight with state regulators
Even as the Trump administration provides a clear regulatory framework for the crypto industry and expands the opportunities for businesses to provide innovative crypto services, the federal government is likely to continue to prosecute fraud, money laundering, sanctions violations, and similar crime cases in the crypto context. Additionally, many businesses need to navigate the web of complex state regulations that apply to crypto and other digital assets. For example, Crypto companies operating in New York are subject to New York’s “Bitlicense” regulations and licensing regime. California was recently enacted and currently implements the Digital Financial Assets Act. This requires licenses to many crypto companies as well. Many states’ gold sending licensing laws continue to apply to crypto companies.
Additionally, the state attorney general and securities regulators may seek to fill perceived gaps in crypto-related enforcement. New York Attorney General Letitia James has been particularly keen on introducing enforcement measures against well-known crypto companies. The state’s enforcement activities will continue and could in fact increase during President Trump’s second term.
Compliance Considerations and Other Action Items
The prospect of a decline in regulations and enforcement under the Trump administration does not necessarily reduce the overall risks of the crypto industry, and businesses should not compromise on compliance. Complying with existing road rules, such as anti-money laundering laws and regulations, will continue to be extremely important for crypto companies. Additionally, regulated entities must meet their usual compliance obligations, including implementing and maintaining appropriate policies and procedures, training and other management.
The federal government’s enforcement and legislative sectors have clear momentum to design and implement clearer roadmaps that allow digital assets and blockchain technology companies to operate and grow with greater regulatory certainty. However, change takes time and companies need to continue to carefully evaluate how products and services fit into existing and evolving regulatory frameworks.
