On January 23, 2025, President Trump signed an Executive Order aimed at strengthening American leadership in digital financial technology1. Key aspects of this order include:

• Establishing a new working group tasked with developing a federal regulatory framework for digital assets, including stablecoins

• Evaluating the creation of a strategic national digital assets stockpile

• Prohibiting agencies from actions related to establishing or promoting central bank digital currencies (CBDCs)

• Revoking the previous Executive Order on digital assets issued by the Biden Administration in 2022

The working group, chaired by the White House Special Advisor for AI and Crypto, has been given 180 days to submit its proposed regulatory framework to the President2. This move signals a significant shift in the U.S. approach to cryptocurrency regulation and aims to provide greater clarity for the digital asset industry.

David Sacks, appointed as the White House AI & Crypto Czar, is leading a new interagency working group to develop a comprehensive pro-crypto regulatory framework. This group, which includes representatives from the SEC and Treasury, aims to create clear rules that foster innovation while ensuring market stability1. Key initiatives include:

• Stablecoin oversight to boost demand for U.S. Treasuries, with stablecoins expected to generate over $100 billion in Treasury demand by 20252

• Market structure reforms to incentivize innovation within the U.S., including potential zero capital gains tax for U.S.-based crypto projects1

• Regulatory "safe harbors" for compliant firms, shifting from the previous administration's enforcement-heavy approach to one that embraces innovation13

These measures, coupled with the appointment of Commissioner Peirce to lead the SEC's crypto task force, signal a fundamental shift towards a more crypto-friendly regulatory environment in the United States13.

Congress has formed a joint working group to advance comprehensive crypto legislation, with a focus on stablecoins and regulatory clarity. The bipartisan Lummis-Gillibrand Payment Stablecoin Act, introduced in the Senate, proposes a regulatory framework that requires stablecoin issuers to maintain one-to-one reserves and prohibits unbacked, algorithmic stablecoins1. This aligns with Senator Bill Hagerty's GENIUS Act, which mandates monthly audited reports on reserves and imposes criminal penalties for false information2.

The legislative push aims to streamline licensing processes and balance state and federal oversight. The proposed framework divides authority between state agencies and federal watchdogs, specifically the Federal Reserve and the Office of the Comptroller of the Currency32. This approach seeks to address contentious issues that have hindered previous attempts at crypto regulation, while fostering innovation and ensuring consumer protection12. The bipartisan support for these initiatives signals a growing consensus on the need for clear, pro-growth regulatory guidelines in the rapidly evolving digital asset landscape.

The Trump administration is exploring the feasibility of establishing a national Bitcoin reserve, separate from the proposed $10 billion sovereign crypto fund. This initiative, if implemented, would mark unprecedented institutional adoption of Bitcoin and potentially create significant structural buying pressure in the market12.

The concept has gained traction following endorsements from key figures like VanEck and political leaders, including Trump himself1. However, the proposal faces substantial challenges. Logistical hurdles include securing such a large Bitcoin holding and mitigating potential market volatility from large-scale purchases2. Additionally, the initiative requires Congressional approval for funding, as the Treasury's discretionary budget is limited3. Despite these obstacles, the mere consideration of a national Bitcoin reserve underscores the growing influence of cryptocurrencies in modern finance and could pave the way for broader adoption at both state and federal levels2.