On January 23, 2025, Donald Trump, wasting no time in his new presidential term, signed an executive order establishing a working group on cryptocurrencies. It aims to strengthen the U.S.’s leadership in the digital asset market.  

Key Figures and Objectives

The group, named the “Presidential Working Group on Digital Asset Markets”, is led by David Sacks, a Silicon Valley venture capitalist, and the White House’s very first “AI and Crypto Czar.” His nomination was confirmed back in December 2024.  

Other members of the group include:  

  • The U.S. Secretary of the Treasury.  
  • The Chair of the Securities and Exchange Commission.
  • The Chair of the Commodity Futures Trading Commission.
  • Bo Hines — a former Republican congressional candidate and ex-college football player, who will oversee the group’s day-to-day operations.  

Rounding out the team are about 20 representatives from the crypto industry, including founders and CEOs of major crypto companies. The group’s special focus was placed on the participation of Trump campaign donors.

The specific language in the order states:

The Working Group shall evaluate the potential creation and maintenance of a national digital asset stockpile and propose criteria for establishing such a stockpile, potentially derived from cryptocurrencies lawfully seized by the Federal Government through its law enforcement efforts.

The group has identified several key objectives:  

  • Developing a Regulatory Framework for Cryptocurrencies.

The task force is tasked with proposing new rules for digital assets, including regulating stablecoins, defining criteria for classifying tokens (as securities, commodities, or other assets), and ensuring transparency.

  • Creating a National Reserve of Digital Assets

One of the most worthy goals is exploring the feasibility of a ‘strategic reserve of digital assets’. According to the executive order, this reserve could be built from cryptocurrencies seized by federal law enforcement. While Bitcoin isn’t explicitly mentioned, the idea of a national Bitcoin reserve has gained substantial support.  

  • Protecting the Crypto Industry from Banking Discrimination

The order directs the task force to develop measures ensuring crypto companies have access to banking services. This stems from industry complaints that regulators have discouraged banks from working with crypto firms.  

  • Banning Central Bank Digital Currencies (CBDCs)

The order explicitly bans the creation of a U.S. CBDC. Republicans have long criticized central bank digital currencies for threatening privacy and increasing government control over financial transactions.  

  • Defending Citizens’ Rights to Use Cryptocurrencies

The task force must also protect Americans' rights to self-custody crypto, mine, validate transactions, and develop blockchain software.

Despite the ambitious goals, experts are split on the feasibility of implementing this executive order. A significant hurdle is the lack of detail on how to establish the crypto reserve. Some analysts believe Congressional approval would be required, which could delay the process.  

Moreover, the task force has no real authority beyond offering advice to Trump and Congress, who will ultimately make their own decisions.  

Market Reaction: Buy the Rumor, Sell the News

When U.S. Senator Cynthia Lummis posted on X, teasing that “big things are coming” and urging her followers to “stay tuned,” hinting at a potential presidential move to create a strategic Bitcoin reserve, Bitcoin surged from $102,100 to $106,850 in record time.  

But the euphoria was short-lived. The market quickly realized the senator was actually referring to her appointment as chair of the Senate Banking Subcommittee on Digital Assets. Minutes after Trump signed the executive order, BTC responded by falling, briefly falling to $102,220.

While the executive order didn’t spark immediate bullish vibes, falling short of a full national Bitcoin reserve announcement, crypto influencers reacted positively.  

Crypto analyst Will Clemente III pointed out the classic market behavior of “buy the rumor, sell the news.” Despite the initial dip, Clemente urged investors to stay optimistic, emphasizing that the order marks a significant step toward broader adoption of digital assets. 

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