Trump’s Executive Order Paves the Way for Crypto Reserves, But Does Not Mention Bitcoin

U.S. President Donald Trump signed his first executive order related to crypto on Thursday, officially establishing the Presidential Working Group on Digital Asset Markets and laying the groundwork for exploring some of his campaign promises, including potentially establishing a national reserve for bitcoin and other assets.

The Presidential Working Group will advise Trump on crypto policy issues and inform him on decision-making related to the industry. Trump previously announced that the group will be led by Silicon Valley venture capitalist David Sacks, the first person in the White House responsible for artificial intelligence and crypto.

His daily operations will be managed by Bo Hines, a one-time Republican candidate for Congress. The group will also include the Secretary of the Treasury, heads of the SEC and CFTC, and other department and agency leaders.

The council will consist of 20 founders and executives from U.S. crypto companies. Industry donors for Trump’s presidential campaign are likely to be a priority. The group has no real authority other than the ability to advise Trump and Congress, who will make decisions themselves.

The executive order titled ‘Strengthening American Leadership in Digital Financial Technology’ further tasks the group with exploring the premise of a strategic national reserve of digital assets, following Trump’s campaign promise to establish a national bitcoin reserve.

Such an idea has been supported in the Senate through legislation by Senator Cynthia Lummis, and several states are now considering their own bitcoin reserve laws. However, the executive order does not mention bitcoin by name, nor does it mention any other specific crypto asset.

Furthermore, the order states that agencies are blocked from launching central bank digital currencies or CBDCs, which are often referred to as ‘digital dollars’. Republicans have largely mocked these centralized cryptocurrencies due to privacy concerns.

It also aims to protect and promote the rights of American companies and citizens to conduct transactions and independently hold cryptocurrencies, mine crypto, validate blockchain transactions, and run blockchain software.

Trump is also expected to follow this first crypto-related executive order with several others. A major priority for the industry is the repeal of the SEC’s rule SAB 121, which discourages U.S. banks from holding cryptocurrencies. Congress repealed SAB 121 last spring, but former President Joe Biden then vetoed the legislation, leaving the rule in place.

Trump can revoke SAB 121 by executive order and is expected to do so.

Other crypto policies that Trump may consider in future executive orders include repealing the SEC’s controversial exchange rule, which targets decentralized finance projects, and directing federal agencies, including the State Department, to make the promotion of crypto innovation a national priority.

However, with or without executive orders, Trump’s administration has already significantly and predictably stepped into crypto. On Tuesday, the SEC established a new crypto working group led by Hester Peirce, a strongly pro-industry commissioner.

The working group will aim to create reasonable disclosure frameworks that will allow crypto projects and companies to legally register if necessary. This will end the long-standing, effective SEC policy of regulating the industry through enforcement, an approach that has brought much uncertainty to the sector and pushed many companies out of the country.