Barely three weeks into his second term, President Trump has wasted no time signaling plans to deliver on a campaign pledge to make the United States the “crypto capital of the planet.”[1] Amidst a flurry of actions in the days following his inauguration, the President signed an executive order and continued filling out his financial regulatory team with digital asset proponents.
Below, in the first of an expected series, we outline initial developments and their potential implications for the future of digital assets and cryptocurrency regulation in the United States.
Digital Assets Executive Order
On January 23, 2025, President Trump issued a wide-ranging executive order (“EO”) setting a federal policy “to support the responsible growth and use of digital assets, blockchain technology, and related technologies across all sectors of the economy.”[2] Although it stopped short of some measures industry advocates had been hoping for, the EO may herald a shift in the federal government’s posture toward digital assets.
The EO revokes former President Biden’s 2022 executive order titled “Ensuring Responsible Development of Digital Assets” and rescinds all “policies, directives, and guidance issued pursuant to” it. Among other things, the earlier order identified development of a central bank digital currency (“CBDC”) as an urgent priority, a position directly at odds with the second Trump administration’s policies. To that end, the EO directs immediate termination of “any ongoing plans or initiatives at any agency related to the creation of a CBDC” and prohibits federal agencies from taking any action to establish a CBDC in the United States (unless required by law). By contrast, stablecoins receive favorable treatment—the EO states explains that “the sovereignty of the United States dollar” must be preserved and protected, including through the development of dollar-backed stablecoins.
The EO directs federal agencies to “provide regulatory clarity and certainty” on digital assets and creates a Working Group on Digital Assets to coordinate the effort. Chaired by the White House Special Advisor for AI and Crypto David Sacks, the Working Group includes as members the Secretary of the Treasury, Chairman of the SEC, Chairman of the CFTC, and the heads of other relevant departments and agencies. Notably, however, leadership of the federal banking agencies—the Federal Reserve, FDIC and OCC—will not take part in the Working Group.[3]
The Working Group’s ultimate mandate is to “propose a Federal regulatory framework governing the issuance and operation of digital assets, including stablecoins, in the United States,” including “provisions for market structure, oversight, consumer protection, and risk management,” and will work under an aggressive schedule for that purpose. Its members who lead relevant regulatory agencies are required to issue: a report identifying federal regulations, guidance, and orders affecting the digital asset industry within 30 days (i.e., by February 22, 2025); and recommendations as to whether the identified agency actions should be rescinded within 60 days (i.e., by March 24, 2025). Within 180 days (i.e., by July 22, 2025), the full Working Group is required to submit a report to the President containing legislative and regulatory proposals to create a federal framework governing digital asset “issuance and operation” as well as the potential creation of a national digital asset stockpile.
Agency Personnel and Leadership Changes
President Trump’s initial picks to lead federal financial regulatory agencies also demonstrate a focus on—and directional support for—digital assets and cryptocurrencies, and some have already begun to take action.
Securities and Exchange Commission
Following the inauguration, SEC commissioner Mark Uyeda assumed the role of Acting Chairman, replacing outgoing Chairman Gary Gensler, an outspoken skeptic of the digital asset industry. Acting Chairman Uyeda was frequently at odds with Mr. Gensler’s approach to crypto and has advocated for clearer regulation in the crypto space.[4] Soon after acceding to the new role, Acting Chairman Uyeda formed a Crypto Task Force to be led by Commissioner Hester Peirce, a longstanding proponent of establishing a comprehensive regulatory framework for digital asset regulation.[5] The Task Force will focus on clarifying definitions of cryptocurrency, registration requirements, and disclosure requirements. On February 4, Commissioner Peirce released a statement outlining her views on what should be prioritized in creating a regulatory framework for cryptocurrency and calling for requests for no-action letters to give the staff insight into the concerns of those in the crypto industry.[6]
President Trump’s nominee to lead the SEC, Paul Atkins, is widely expected to be confirmed for the role, and likely in the near term. Mr. Atkins served as an SEC Commissioner from 2002-2008 and is widely seen as a supporter of digital assets and fintech more broadly.[7]
An early indication of the new administration’s support for digital assets also came in an accounting policy change at the SEC days just after the inauguration. On January 23, 2025, the agency issued Staff Accounting Bulletin (“SAB”) 122, which rescinds SAB 121 and fulfilled one of the crypto industry’s highest priorities.[8] SAB 121 required institutions holding Bitcoin and crypto assets in a custodial capacity to record those holdings as liabilities on their balance sheets, something few were willing to do given concerns about the regulatory capital and other implications. Commissioner Peirce had criticized SAB 121 as “scattershot and inefficient” and marked its end with a supportive social media post.[9]
Commodity Futures Trading Commission
Similarly, CFTC commissioner Caroline Pham assumed the role of Acting Chairman upon inauguration, replacing former Chairman Rostin Behnam. Acting Chairman Pham has an extensive history of advocating for digital assets within the CFTC and, before that, in the private sector at Citigroup.[10] Indeed, Ms. Pham was recognized on CoinDesk’s 2023 “Most Influential” list for spearheading a CFTC digital asset markets pilot program.[11] Soon after being named acting chairman, she announced a series of public roundtables on topics including digital assets.[12]
FDIC
Although as a banking regulator the FDIC plays a more indirect role with respect to digital assets, leadership changes at that agency also suggest a change in direction, consistent with the new administration’s priorities. Acting Chairman Travis Hill—who replaced crypto-sceptic Martin Gruenberg—is likely to be more sympathetic to efforts by traditional financial institutions to engage with the digital asset industry. To that end, Mr. Hill gave a speech on January 10, just before he was named acting chairman, stating that he thought that the FDIC should offer more guidance on digital assets and tokenization.[13] His stated priorities include developing a federal framework enabling banks to: provide digital asset safekeeping and custody services; facilitate customer purchases and sales of crypto-assets; make loans collateralized by crypto-assets; and issue and distribute stablecoins.[14]
Other Developments: Crypto in the Courts
Executive branch policymakers supportive of the digital asset industry recently received an unexpected boost from the judiciary. Specifically, on January 13, 2025 the Third Circuit Court of Appeals remanded to the SEC an order denying Coinbase’s request that the agency promulgate rules clarifying how and when the federal securities laws apply to digital assets. According to a unanimous panel of Third Circuit judges, the SEC’s denial was “conclusory and insufficiently reasoned” and should be explained in greater detail.[15] Although the court did not order the SEC to institute rulemaking proceedings—as Coinbase requested—the decision was widely seen as an important “win” for the digital asset industry, providing a natural vehicle for the newly-constituted SEC to outline its position.[16]
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[1] How Crypto Regulation Could Change Under Trump and the New SEC. We discussed potential changes in financial regulation under the incoming administration, including with regard to digital assets, in a November 11th blog post: Take Two: What could a second Trump Administration mean for bank regulation in the U.S.?, David Sewell, Alison Hashmall, Nariné Atamian.
[2] Strengthening American Leadership in Digital Financial Technology – The White House. The EO also addresses an issue that will be a focus of upcoming Congressional hearings: the so-called “open banking” debate. Specifically, it declares that administration policy will include “protecting and promoting fair and open access to banking services for all law-abiding individual citizens and private-sector entities alike.” This is a response to concerns that banks have been improperly denying service to individuals and companies engaged in the digital asset industry, a charge that in earlier years had been by participants in other politically sensitive industries, including firearms, oil and gas, and tobacco. We expect to address the open banking debate more comprehensively in future posts.
[3] The federal banking agencies seem generally to be out of favor with the President. In a January 29, 2025 post on his social media platform Truth Social, for example, President Trump said: “The Fed has done a terrible job on Bank Regulation. Treasury is going to lead the effort to cut unnecessary Regulation, and will unleash lending for all American people and businesses.” See Trump Says Fed Has Done ‘Terrible Job’ on Banking Regulation (1).
[4] SEC.gov | On Today’s Episode of As the Crypto World Turns: Statement on ShapeShift AG
[5] SEC.gov | SEC Crypto 2.0: Acting Chairman Uyeda Announces Formation of New Crypto Task Force
[6] SEC.gov | The Journey Begins.
[7] Trump picks crypto backer Paul Atkins as new SEC chair : NPR
[8] SEC.gov | Staff Accounting Bulletin No. 122
[9] SEC.gov | Response to Staff Accounting Bulletin No. 121; Hester Peirce on X: "Bye, bye SAB 121! It's not been fun: https://t.co/cIwUc0isUE | Staff Accounting Bulletin No. 122" / X
[10] Acting Chairman Pham: Time For CFTC to Get Back to Basics | CFTC
[11] Acting Chairman Pham: Time For CFTC to Get Back to Basics | CFTC
[12] Acting Chairman Pham to Launch Public Roundtables on Innovation and Market Structure | CFTC
[13] Charting a New Course: Preliminary Thoughts on FDIC Policy Issues | FDIC.gov
