President Donald Trump has issued an executive order aimed at promoting U.S. leadership in digital assets and financial technology, while safeguarding economic liberty. The order, announced on January 23, underscores the administration's recognition of the significance of digital assets in fostering innovation, economic growth, and international leadership.
"It remains to be seen exactly how this plays out, but these explicit statements represent a huge positive change," said Norbert Michel, director, Center for Monetary and Financial Alternatives. "They look very much like a 180-degree reversal in the executive branch's view toward crypto, and it's very hard not to take that as a good sign."
Norbert Michel, director of the Cato Institute's Center for Monetary and Financial Alternatives, commented on this development in a January 24 commentary. He said that the President's executive order represents a positive shift from the previous administration's stance on cryptocurrency.
According to the executive order, the Trump administration intends to support digital assets, blockchain technology, and related innovations by promoting U.S. dollar-backed stablecoins, ensuring fair access to banking services, and safeguarding firms' and individuals' ability to use open public blockchain networks.
The order also announces the establishment of a Working Group on Digital Asset Markets within the National Economic Council. This group will be led by the Special Advisor for AI and Crypto and is tasked with reviewing existing guidelines and regulations related to digital assets. It will also make policy recommendations and assess the potential for creating a strategic digital asset stockpile.
In addition, venture capitalist David Sacks has been appointed as the "White House AI and Crypto Czar," according to Bitcoin Magazine. Crypto enthusiasts are hopeful that Sacks will leverage his Silicon Valley expertise to shape regulations that encourage innovation while protecting investors. Industry participants anticipate reduced regulatory barriers in the crypto sector, incentives for crypto startup investments, and increased collaboration between public and private sectors.
Michel has previously served as Director for Data Analysis at the Heritage Foundation and as a finance and economics professor at Nicholls State University’s College of Business.
