On January 23, 2025, the President of the United States issued a groundbreaking executive order aimed at fostering the development of digital assets and blockchain technologies. The new guidelines are designed to ensure the U.S. remains at the forefront of the digital asset space, providing a transparent and fair framework to promote the industry’s growth.

Key Objectives of the Executive Order

The executive order establishes principles that will guide the responsible development of digital assets and blockchain technologies. Below are the key goals outlined in the directive:

Open Access to Public Blockchains

The U.S. government is committed to ensuring that citizens and businesses have unrestricted access to public blockchain networks. This includes the ability to develop related software and securely store digital assets, free from censorship and limitations.

Support for the U.S. Dollar

The directive encourages the development of stablecoins pegged to the U.S. dollar. These stablecoins will help preserve the U.S. economic sovereignty while expanding the global use cases of the dollar in digital transactions.

Fair Access to Banking Services

The executive order seeks to ensure that businesses and individuals working within the digital asset industry can access fair and equitable banking services. This will enable greater participation and growth in the sector.

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Legal Transparency

The order calls for the creation of clear and impartial legal frameworks that will facilitate innovation in blockchain and digital assets, providing a stable environment for the industry to thrive.

Ban on Central Bank Digital Currencies (CBDCs)

The U.S. government will prevent the creation and use of CBDCs, citing concerns over privacy risks and potential economic instability that could arise from their implementation.

Key Definitions

To better understand the implications of this executive order, let’s take a look at some of the key terms:

Digital Asset

A digital asset is any form of value recorded on a distributed ledger, such as cryptocurrencies, tokens, and stablecoins.

Blockchain

Blockchain is a decentralized, distributed ledger technology that enables encrypted and public data sharing across a network of participants.

Central Bank Digital Currency (CBDC)

A CBDC is a form of national digital currency issued by a central bank, representing a direct debt obligation of that central bank.

Repeal of Previous Policies

With this new directive, the U.S. government is also repealing earlier policies and frameworks related to digital assets. This includes Executive Order 14067 and the “Department of Treasury Framework for International Engagement on Digital Assets,” signaling a new direction for the industry.

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Creation of the Presidential Working Group on Digital Assets

A key component of the new guidelines is the formation of the Presidential Working Group on Digital Assets, which will operate under the National Economic Council. The group’s responsibilities include:

Developing a Federal Legal Framework

The working group will be tasked with creating regulations to govern the issuance and operation of digital assets and stablecoins.

Evaluating National Digital Reserves

The group will also propose criteria for establishing national digital reserves, potentially utilizing confiscated digital currencies.

Holding Public Sessions

In an effort to stay in touch with industry developments, the group will host public sessions to gather feedback from industry experts and digital asset leaders.

Ban on CBDCs

A notable aspect of the executive order is the ban on the creation and promotion of CBDCs. The order specifically prohibits all federal agencies from developing or supporting CBDCs within the U.S. or internationally. Existing CBDC projects must cease immediately.

Conclusion

This new executive order signals the U.S. government’s continued commitment to maintaining its leadership in the rapidly evolving digital asset and financial technology sectors. By focusing on legal transparency, supporting innovation, and protecting economic sovereignty, these guidelines could help ensure a more stable and prosperous future for the cryptocurrency industry.

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