In the whirlwind of news from the first week of the Trump administration—where “whirlwind” might be an understatement—one executive order marking a significant policy shift flew under the media’s radar. On January 23, 2025, President Trump issued an Executive Order titled “Strengthening American Leadership In Digital Financial Technology,” setting the stage for a bold new direction in U.S. digital asset policy. Among other things, this executive order aims to:

• Promote the responsible growth and use of digital assets, blockchain technology and related innovations across all sectors of the economy; and
• Provide regulatory clarity and certainty through technology-neutral regulations, essential for a vibrant and inclusive digital economy. 

In particular, the executive order forms a working group made up of several cabinet members and agency heads, including the chairs of the SEC and CFTC, and establishes a clear (if ambitious) timeline for federal action. Within 30 days, each agency represented in the working group must identify all regulations, guidance documents, orders or other items that affect the digital asset sector, and within 60 days they must recommend whether any of these should be rescinded, modified or codified in new regulations. Within 180 days, the working group is to submit a comprehensive report of recommended regulatory and legislative proposals to effectuate the president’s policy aims, accounting for market structure, oversight, consumer protection and risk management. The executive order effectively nullified prior actions in the cryptocurrency space under the Biden administration.

All of this means that there are exciting times ahead in the world of cryptocurrency and blockchain. Greater regulatory certainty coupled with the administration’s aim of “responsible growth” are likely to foster innovation and development in the sector, reduce operational challenges for businesses in this space and perhaps even shift the global center of innovation in cryptocurrencies and blockchain technologies to the U.S. Stay tuned for more updates!