Trump Sets Crypto Path with Executive Order, SEC Nixes SAB 121
By Kapil Rajyaguru
On January 23, 2025, President Donald Trump signed a landmark executive order aimed at shaping the future of the cryptocurrency industry in the United States. The order establishes an internal working group, led by Trump’s “AI and crypto czar” David Sacks, with the goal of making America the global leader in crypto.
Along with new crypto order, Trump also signed an executive order to create an AI action plan within 180 days to boost U.S. global AI dominance. The order also initiates the revocation of policies from Biden’s October 2023 AI executive order.
The executive order makes a bold move by halting the development of a U.S. central bank digital currency (CBDC) and initiating a study on creating a national crypto stockpile, potentially including lawfully seized assets like Bitcoin.
Notably, this ban on CBDCs could give stablecoins a strategic advantage, as it aligns with the views of critics like Vivek Ramaswamy and Ron DeSantis, who have opposed the idea of sovereign digital money.
The proposed working group, including key U.S. officials like the Treasury Secretary, SEC chair, and CFTC chair, will advise Trump on crypto regulations. Within six months, they’ll submit a report with recommendations on a digital asset stockpile and legislative proposals.
The move aligns with Trump’s campaign promises to protect the crypto sector, including his controversial stance against CBDC creation. However, the order has left some Bitcoin advocates disappointed. Notably, the executive order does not specifically mention Bitcoin, a core issue for many in the crypto community.
“The executive order does not mention ‘Bitcoin’ once,” tweeted podcaster Peter McCormack, while Travis Kling of Ikigai Asset Management expressed concerns about the broad “digital assets” language, fearing it could include non-Bitcoin assets in the proposed stockpile.
Dennis Porter, CEO of the Bitcoin-focused Satoshi Action Fund, said it’s “pragmatic” for the working group to use the word “digital asset’” as the term is “tech neutral” and “reduces political friction.”
This digital stockpile could include over $20 billion in Bitcoin currently seized by US law enforcement, as well as other assets like Ether.
The news caused a slight dip in Bitcoin’s price shortly after the order was signed, as markets absorbed the implications of the order’s more generalized language.
Despite the lack of an immediate bullish response to the crypto-specific executive order, thought leaders and major investors in the sector like Michael Saylor of MicroStrategy lauded the news as a paradigm shift toward Bitcoin mass adoption.
In a separate but impactful move, the US Securities and Exchange Commission (SEC) rescinded its controversial rule, SAB 121, which required financial firms holding crypto on behalf of customers to report the assets as liabilities.
This policy had been widely criticized by the crypto industry for complicating the accounting process. SEC Commissioner Hester Peirce celebrated the reversal, tweeting, “Bye, bye SAB 121!” Senator Cynthia Lummis also lauded the decision, calling it a win for innovation.
The cancellation of SAB 121 signals a shift in the SEC’s approach under Trump’s administration, with acting chair Mark Uyeda leading the charge. This move comes amid ongoing efforts in Congress to address crypto oversight, including bills to regulate market structure and stablecoins.
While Trump’s executive order marks a significant step for the crypto industry, its broad nature has left both excitement and uncertainty in its wake. The order aims to build a regulatory framework while also addressing legal complexities surrounding crypto, with future decisions likely shaped by Congress, independent agencies like the SEC, and the evolving market itself.
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