5 Takeaways From Trump’s Bullish New Crypto Executive Order

Trump didn’t waste any time delivering new crypto legislation. Just days after taking office this month, he signed the “Strenghtening American Leadership in Digital Financial Technology” executive order.

Notably, this order revokes a previous executive order put into place by Joe Biden. It aims to position the US at the forefront of innovation for digital assets and financial technology, and is being seen as a watershed moment for crypto proponents.

Here are 5 major implications of this new executive order. Whether or not you live in the US, you might want to buckle in.

#1 - The Freedom to Transact and Write Code

Section 1.1 in Trump's new executive order is a big win for builders in the crypto industry. Among other actions, it protects the ability for people to develop and deploy software without persecution. 

This section is dedicated to:

This is particularly relevant for developers like Sergei of Tornado Cash, who faced major legal troubles in the US for creating an open-source, permissionless DeFi privacy protocol.

By ensuring this right to build, crypto innovators and developers may be emboldened to create innovative new projects that could prove extremely disruptive in 2025 and beyond.

#2 - USD Stablecoins Just Got a Major Win

Trump's crypto executive order is HUGE for stablecoins.

That’s thanks to this section in particular, which emphasizes the importance of:

“promoting and protecting the sovereignty of the United States dollar, including through actions to promote the development and growth of lawful and legitimate dollar-backed stablecoins worldwide”

In other words, it promotes the development and growth of lawful and legit dollar-backed stablecoins. 

While we’re not quite sure which stablecoins will be considered ‘lawful’ and ‘legitimate’, these 7 core principals of true decentralized stablecoins would be a great place to start.

Stablecoins have massive implications for the broader crypto industry, since they allow users to transact with a stable value currency while still enjoying the benefits of censorship resistance, transaction speed, and borderlessness. 

#3 - Clearer Regulation Is Coming

In the US, crypto regulation and guidelines for both businesses and individuals have been disorganized to say the least. 

Determining how much to pay in crypto taxes, identifying what qualifies as a security, and understanding what is – or is not a sanctioned product proved to be extremely difficult.

The uncertainty deterred retail customers, crypto businesses and large financial institutions from getting involved in the industry, and lawsuits derailed innovation.

Fortunately, this section of the executive order promises new guidelines with a focus on

“providing regulatory clarity and certainty built on technology-neutral regulations, frameworks that account for emerging technologies, transparent decision making, and well-defined jurisdictional regulatory boundaries, all of which are essential to supporting a vibrant and inclusive digital economy and innovation in digital assets, permissionless blockchains, and distributed ledger technologies”

#4 - Banning Central Bank Digital Currencies

Central Bank Digital Currencies (CBDCs) are one of the greatest ongoing threats to our freedoms — and they’re being “explored” in as many as 134 countries.

In addition to misusing the underlying technology behind crypto to serve as the very thing that the crypto movement was designed to oppose, CBDCs present massive concerns for everyday citizens. 

Think tanks like the Cato Institute, for instance, have flagged that CBDCs could enable the unprecedented surveillance of citizens by governments through transaction tracking. 

CBDCs risk undermining the autonomy of the financial system by centralizing control, potentially leading to increased systemic vulnerabilities. Additionally, CBDCs might marginalize traditional banks and financial institutions, disrupting existing financial ecosystems and potentially limiting consumer choice.

This new executive order is the first time that we’ve received written confirmation that the US will not go ahead with the implementation of its own CBDC for the foreseeable future. 

The order states its intent to:

“[take] measures to protect Americans from the risks of Central Bank Digital Currencies (CBDCs), which 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 a CBDC within the jurisdiction of the United States”

#5 - A New Working Group For Crypto and AI

Another major implication of this executive order is the establishment of the President's Working Group on Digital Asset Markets within the Economic Council.

This is a new think tank that will serve the US’ interests in regards to artificial intelligence and crypto. This means it could have huge implications for how crypto regulation is delivered during this administration.

While we’re yet to find out who the Special Advisor will be for AI and crypto, this is nonetheless a huge step for the legitimacy of cryptocurrencies in the US.

Of course, with this increased focus on crypto in the world’s foremost superpower, the global crypto industry could be well positioned to reap these benefits as well.

What we’re looking at here is an administration that has now put into writing its vow to have crypto’s back — and that’s a win worth celebrating.