Fact Sheet: Executive Order to Establish United States Leadership in Digital Financial Technology

Fact Sheets

TLDR

This fact sheet presents several misleading statemetns on the executive order creating a Presidential Working Group on digital finance that excludes major banking regulators, bans CBDCs, establishes a national digital asset stockpile, and mandates a new federal framework within 180 days. Critics argue it creates regulatory gaps, ignores key stakeholders, and may be politically motivated by crypto industry campaign donations.

This is a “fact sheet” about the “STRENGTHENING AMERICAN LEADERSHIP IN DIGITAL FINANCIAL TECHNOLOGY” executive order.

The establishment of the Presidential Working Group notably excludes key regulatory bodies like the Federal Reserve, FDIC, OCC, and NCUA. This omission of banking regulators is particularly concerning given their crucial role in financial stability and oversight. The working group’s structure appears designed to sidestep traditional regulatory frameworks rather than enhance them.

The order’s claim about “regulatory clarity” is misleading for several reasons:

  • The 180-day timeline for developing a comprehensive federal framework is unrealistically short given the complexity of digital assets.
  • The order effectively dismantles existing consumer protections without immediate replacements.
  • The revocation of previous frameworks creates a regulatory vacuum that could increase market uncertainty.

The blanket prohibition on Central Bank Digitgal Currencies (CBDC)s is problematic because:

  • It potentially cedes technological leadership to other nations, particularly China.
  • The order oversimplifies the complex relationship between CBDCs and financial stability.
  • It ignores the potential benefits of CBDCs for cross-border payments and financial inclusion.

The proposed “strategic national digital assets stockpile” raises several concerns:

  • It relies heavily on seized assets from law enforcement actions.
  • The U.S. currently holds 198,109 Bitcoin valued at approximately $20.1 billion, but there’s no clear strategy for managing this reserve.
  • The order lacks specific criteria for maintaining and securing such a stockpile.

The timing and nature of this order suggest political rather than policy-driven motivations:

  • Trump received substantial campaign funding from crypto stakeholders.
  • The order follows campaign promises made at the Bitcoin Conference in Nashville.
  • Nearly half of corporate donations for Trump’s 2024 election cycle came from crypto stakeholders.

The referenced executive order appears to prioritize political expediency over comprehensive regulatory reform. While it claims to promote innovation and leadership, it potentially creates regulatory gaps that could increase market risks and reduce consumer protections. The exclusion of key regulatory bodies and the hasty timeline for implementation raise serious concerns about its effectiveness and prudence.

ENSURING U.S. LEADERSHIP IN DIGITAL FINANCIAL TECHNOLOGY: Today, President Donald J. Trump signed an Executive Order to establish regulatory clarity for digital financial technology and secure America’s position as the world’s leader in the digital asset economy, driving innovation and economic opportunity for all Americans.

  • The Executive Order establishes the Presidential Working Group on Digital Asset Markets to strengthen U.S. leadership in digital finance.

    • The Working Group will be tasked with developing a Federal regulatory framework governing digital assets, including stablecoins, and evaluating the creation of a strategic national digital assets stockpile.

    • The Working Group will be chaired by the White House AI & Crypto Czar and include the Secretary of the Treasury, the Chairman of the Securities and Exchange Commission, and the heads of other relevant departments and agencies.

    • The White House AI & Crypto Czar will engage leading experts in digital assets and digital markets to ensure that the actions of the Working Group are informed by expertise beyond the Federal Government.

  • The Executive Order directs departments and agencies with identifying and making recommendations to the Working Group on any regulations and other agency actions affecting the digital assets sector that should be rescinded or modified.

  • The Executive Order prohibits agencies from undertaking any action to establish, issue, or promote central bank digital currencies (CBDCs).

  • The Executive Order revokes the previous Administration’s Digital Assets Executive Order and the Treasury Department’s Framework for International Engagement on Digital Assets which suppressed innovation and undermined U.S. economic liberty and global leadership in digital finance.

ELIMINATING REGULATORY OVERREACH ON DIGITAL ASSETS AND PROTECTING AMERICAN ECONOMIC LIBERTY: President Trump is fulfilling his promise to make the United States the “crypto capital of the planet.”

  • President Trump will help make the United States the center of digital financial technology innovation by halting aggressive enforcement actions and regulatory overreach that have stifled crypto innovation under previous administrations.
  • President Trump’s policy vision marks an unprecedented step towards welcoming in a new era for digital financial technology; one in which President Trump’s administration will work towards ensuring innovation thrives, regulatory frameworks are clear, and economic liberty is protected.
  • The growth of digital financial technology in America must remain unhindered by restrictive regulations or unnecessary government interference.