Trump signs executive order to form internal working group on cryptocurrencies

Washington: US President Donald Trump has signed an executive order to form an internal working group on crypto aimed at making America the world capital in crypto. It also prohibited the establishment of central bank digital currencies.

Chaired by White House AI and Crypto Czar David Sacks, the working group would 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 other members of the group include the secretary of the treasury and the chairman of the Securities and Exchange Commission.

Prohibiting agencies from undertaking any action to establish, issue, or promote central bank digital currencies, the executive order revoked the previous administration's Digital Assets Executive Order and the Treasury Department's Framework for International Engagement on Digital Assets which, the Trump administration claimed, suppressed innovation and undermined the US' economic liberty and global leadership in digital finance.

The White House on Thursday said, "Trump is fulfilling his promise to make the United States the crypto capital of the planet." At the signing ceremony at the Oval Office, Sacks said, "We're going to be forming an internal working group to make crypto, to make America the world capital in crypto under your leadership." Trump, in a brief response, said crypto is “going up”.

According to the executive order, the White House artificial intelligence and 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.

It 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to the working group on any regulations and other agency actions affecting the digital assets sector that should be rescinded or modified.

Later, the White House said Trump would help make the US the centre of digital financial technology innovation by halting "aggressive enforcement actions and regulatory overreach that have stifled crypto innovation under previous administrations".

"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," it said.

The growth of digital financial technology in America must remain unhindered by restrictive regulations or unnecessary government interference, the White House added.