Trump's first encrypted administrative order quick view: 10 main points such as stabilization currency, national reserve, etc.

Written by: Golden Finance

On January 23, 2025, US President Trump issued the first encryption executive order. The 10 key points are as follows:

1. Protect and promote the ability of individual citizens and the private sector to access and use public chains

2. U.S. citizens can develop and deploy software, participate in mining and verification, conduct transactions, and self-custody of digital assets

3. Promote and protect the sovereignty of the US dollar and promote the development and growth of US dollar-backed stablecoins

4. Protect and promote fair and open access to banking services for all law-abiding citizens and private sector entities

5. Provide regulatory clarity and certainty

6. Protect Americans from the risks of CBDC and prohibit the establishment, issuance, circulation and use of CBDC within the jurisdiction of the United States.

7. Cancel Executive Order No. 14067 “Ensuring Responsible Development of Digital Assets” and the Ministry of Finance’s “International Participation Framework for Digital Assets”

8. Establish the Presidential Digital Asset Market Working Group

9. Propose a federal regulatory framework to govern the issuance and operation of U.S. digital assets, including stablecoins.

10. Assess the possibility of establishing and maintaining a national digital asset reserve and propose criteria for establishing such a reserve

The full text of the executive order is as follows:

Strengthening U.S. leadership in digital financial technologies

In accordance with the powers vested in me as President by the Constitution and laws of the United States, and in order to promote American leadership in digital assets and financial technology while protecting economic freedom, I hereby order as follows:

Program 1 and Policy

(a) The digital asset industry plays a critical role in U.S. innovation and economic development and our country’s international leadership. It is therefore the policy of this Government to support the responsible growth and use of digital assets, blockchain technology and related technologies in all sectors of the economy, including:

(i) Protect and promote the ability of individual citizens and private sector entities to access and use open public chain networks without persecution, including the ability to develop and deploy software, participate in mining and verification, and without illegal censorship The ability to transact with others and maintain self-custody of digital assets;

(ii) promote and protect the sovereignty of the U.S. dollar, including by taking actions to promote the development and growth of legal U.S. dollar- backed stablecoins globally;

(3) Protect and promote fair and open access to banking services to all law- abiding citizens and private sector entities;

(iv) Provide regulatory clarity and certainty based on technology-neutral regulations, frameworks that take into account emerging technologies, transparent decision-making and clear jurisdictional regulatory boundaries, all of which are essential to support a vibrant and inclusive digital economy and digital assets, without permission Innovation in blockchain and distributed ledger technology is critical;

(v) Take steps to protect Americans from the risks of central bank digital currencies (CBDCs) that threaten the stability of the financial system, individual privacy, and the sovereignty of the United States, including prohibiting the establishment, issuance, circulation, and use of CBDCs within U.S. jurisdiction .

Section 2 Definition

(a) For purposes of this Order, the term “digital asset” means any digital representation of value recorded on a distributed ledger, including cryptocurrencies, digital tokens, and stablecoins.

(b) The term "blockchain" means any technology involving data:

(i) Shared within the network to establish a public ledger of verified transactions or information between network participants;

(ii) link using cryptographic technology to maintain the integrity of the public ledger and perform other functions;

(iii) distributed to network participants in an automated manner to simultaneously update the network participant’s public ledger state and any other functionality; and

and (iv) consist of publicly available source code.

(c) "Central Bank Digital Currency" means a digital currency or form of monetary value denominated in national accounting units that is a direct liability of a central bank.

Section 3 Revocation of Executive Order 14067 and Treasury Framework

(a) Executive Order No. 14067 (Ensuring Responsible Development of Digital Assets) of March 9, 2022 is hereby revoked.

(b) Direct the Secretary of the Treasury to immediately revoke the “International Engagement Framework for Digital Assets” issued by the Treasury Department on July 7, 2022.

(c) All policies, directives, and guidance issued pursuant to Executive Order 14067 and the Treasury Department's International Engagement Framework for Digital Assets that are inconsistent with the provisions of this order are hereby revoked or rescinded at the discretion of the Secretary of the Treasury.

(d) The Secretary of the Treasury shall take all appropriate measures to ensure compliance with the policies set forth in this order.

Section 4 Establishment of the President’s Working Group on Digital Asset

Markets

(a) There is hereby established within the National Economic Council the President's Task Force on Digital Asset Markets (the Task Force). The Working Group shall be chaired by the Special Advisor on Artificial Intelligence and Encryption (Chair). In addition to the Chairman, the Working Group shall include the following officials or their designees:

(1) Minister of Finance;

(2) Attorney General;

(3) Minister of Commerce;

(4) Secretary of Homeland Security;

(5) Director of the Office of Management and Budget;

(6) Assistant to the President for National Security Affairs;

(vii) Assistant to the President for National Economic Policy (APEP);

(8) Assistant to the President for Science and Technology;

(ix) Homeland Security Advisor;

(x) Chairman of the Securities and Exchange Commission; and

(11) Chairman of the Commodity Futures Trading Commission

committee.

(12) In appropriate circumstances and consistent with applicable law, the President may invite heads of other executive departments and agencies (agencies) or other senior officials within the Office of the President to participate in working group meetings based on their expertise and relevance to their responsibilities. .

(b) Within 30 days of the date of this order, the Treasury Department, the Department of Justice, the Securities and Exchange Commission, and other relevant agencies (the heads of which are included in the working group) shall identify all regulations, guidance documents, orders affecting the digital asset field or other projects. Within 60 days of the date of this order, each agency shall submit recommendations to the Chairman whether each identified regulation, guidance document, order, or other item should be withdrawn or modified or, for items other than regulations, whether adopted in regulations.

(c) Within 180 days of the date of this order, the task force shall submit a report to the President through APEP, which report shall provide regulatory and legislative recommendations to advance the policies identified in this order. In particular, the report should focus on the following aspects:

(i) The working group should propose a federal regulatory framework to govern the issuance and operation of digital assets, including stablecoins, in the United States. The working group's report should consider provisions for market structure, supervision, consumer protection and risk management.

(ii) The working group shall evaluate the possibility of establishing and maintaining a national digital asset reserve and propose criteria for establishing such a reserve, which may be derived from cryptocurrencies lawfully seized by the federal government through law enforcement efforts.

(d) The Chair shall designate an Executive Director of the Working Group to coordinate the day-to-day work of the Working Group. On matters involving national security, the working group shall consult with the National Security Council.

(e) Where appropriate and consistent with the law, the Working Group shall hold public hearings and receive the personal expertise of digital asset and digital market leaders.

Section 5 prohibits central bank digital currencies.

(a) Except to the extent required by law, institutions are hereby prohibited from taking any action to establish, issue, or promote a CBDC within or outside the United States.

(b) Except to the extent required by law, ongoing plans or initiatives by any agency related to the creation of a CBDC within the jurisdiction of the United States shall be terminated immediately, and no further action may be taken to develop or implement such plans or initiatives.

Section 6 Independence of Terms

(a) If any provision of this Order or the application of any provision to any person or circumstances is held to be invalid, the remainder of this Order and the application of its provisions to any other person or circumstances shall not be affected.

Section 7 General Provisions

(a) Nothing in this Order shall be construed to impair or otherwise affect:

(i) Powers conferred by law on an executive department, agency, or its head; or

(ii) Functions of the Director of the Office of Management and Budget regarding budgetary, administrative, or legislative proposals.

(b) Implementation of this order shall be consistent with applicable law and subject to appropriations.

(c) This order is not intended to and will not create any right or interest, whether substantive or procedural, by any party at law or in equity against the United States, its departments, agencies or entities, its officers, Enforcement by an employee or agent or any other person.

White House January 23, 2025