Trump orders crypto working group to draft new regulations

Trump’s New Crypto Regulations and Stockpile Plans

On January 23, 2025, President Donald Trump announced the formation of a cryptocurrency working group. This group will focus on creating new rules for digital assets and looking into the possibility of a national cryptocurrency stockpile, fulfilling Trump’s campaign promise to support cryptocurrencies.

The executive order aims to protect banking services for crypto companies, addressing concerns that U.S. regulators have pressured banks to cut ties with them, which regulators deny. It also prohibits the establishment of government digital currencies that could compete with current cryptocurrencies.

Trump’s approach is a sharp contrast to former President Joe Biden’s administration, which sought to regulate the industry more strictly to prevent fraud and money laundering. Biden’s team launched lawsuits against several crypto exchanges, claiming they violated U.S. laws, which those companies dispute.

The crypto industry welcomed Trump’s announcement, seeing it as a positive sign from the new administration. Nathan McCauley, CEO of Anchorage Digital, called it a major shift in U.S. digital asset policy, emphasizing the need for clear and consistent regulations.

If the order is put into effect, it could help cryptocurrencies gain wider acceptance. This follows a recent announcement from the U.S. Securities and Exchange Commission about creating a taskforce to reform crypto regulations.

Bitcoin’s value surged to a record high of $109,071 earlier in the week, reflecting investor optimism about the new crypto-friendly administration, though it later dropped to around $103,000.

Senator Tim Scott praised Trump for keeping his promises to maintain U.S. leadership in digital asset innovation. The working group will include key financial leaders, like the Treasury Secretary and heads of the SEC and Commodity Futures Trading Commission, all focused on developing a regulatory framework for digital assets, including stablecoins.

Additionally, the group will consider establishing a national digital asset stockpile, potentially created from cryptocurrencies seized by the government through law enforcement actions. However, details on how this stockpile would be set up remain unclear, and experts debate whether new legislation will be needed for its creation.