In a big move for the cryptocurrency world, former President Donald Trump recently signed an executive order that now changes the way digital assets will be handled in the United States. The order sets up a group to focus on digital asset markets but importantly leaves out the Federal Reserve (Fed) and the Federal Deposit Insurance Corporation (FDIC). It’s likely to affect the crypto industry in many significant ways, especially with regards to stablecoin regulations and crypto banking in the future.
What’s the executive order about?
This new executive order is supposed to aid the United States in dominating the digital asset world, make it easier for Web3 companies to operate, and help establish clearer rules. It sets up a group that explores new ways of handling digital assets, one of which would be creating a national digital assets reserve. It will make the United States a more dominant player in the global crypto market.
TRUMP EXEC ORDER REWIRES CRYPTO POLICY
— IBC Group Official (@ibcgroupio) January 24, 2025
Trump’s latest executive order clears roadblocks for Web3—creating a working group to push US crypto leadership and even explore a national digital asset stockpile.
The big twist: the Fed and FDIC are out—ending years of debanking moves… pic.twitter.com/KGrFoTtzn7
Excluding Fed and FDIC: A bold step
An important aspect of the executive order is that there are no seats at the crypto working group table for the Fed or FDIC. According to Custodia Bank’s CEO, Caitlin Long, it is a victory for crypto, especially in terms of business hurt through previous actions made by the Fed and FDIC.
Under the Biden administration, there was “Operation Chokepoint 2.0,” which targeted some crypto companies and tried to block them from banking services. Trump’s move counters this and focuses on more crypto-friendly regulation.
Stablecoins and the Future of Regulation
One major shift in the Trump executive order is how stablecoins will be regulated. Typically, the Fed sets financial rules, and with this order, the Fed no longer will be involved in setting stablecoin policies. Scott Bessent, the pick for Treasury Secretary by Trump, will take charge. Bessent, a billionaire investor who has worked in Soros Fund Management may go easy on stablecoin rules to match a more business-friendly attitude toward regulation, which will make it easier for crypto projects to grow.
Conclusion:
Trump’s executive order brings a new approach to the rules of digital assets in the U.S. By excluding the Fed and FDIC from the crypto working group, it can lead to even more friendly policies for crypto companies. With clear rules and less interference by traditional banks, the future for the crypto industry looks bright.
With time, this may be the heralding order of things for cryptocurrencies, and hence, investment by investors, business persons, and innovators will be easier in the U.S. market.
