Trump Orders Working Group for National Crypto Stockpile

President Donald Trump signed a groundbreaking executive order in Washington on Thursday, establishing a federal working group to propose new digital asset regulations and evaluate the creation of a national cryptocurrency stockpile.

The New Crypto Czar and the Federal Working Group

The newly formed initiative will be spearheaded by David Sacks, the former PayPal COO and founder of venture capital firm Craft Ventures, whom Trump recently appointed as his official cryptocurrency and artificial intelligence “czar.” This high-powered working group will also feature key cabinet members, including the Secretary of the Treasury, the Attorney General, and the Secretary of Commerce, among other high-ranking administration officials.

Trump’s latest executive order, titled “Strengthening American Leadership in Digital Financial Technology,” arrived just two days after the Securities and Exchange Commission (SEC) took its own pro-crypto steps. Under the leadership of crypto-friendly Republican Mark Uyeda, the SEC recently introduced a dedicated crypto task force designed to establish unambiguous regulatory boundaries for the digital asset market. Uyeda is also set to join the presidential working group, signaling a sharp departure from the regulatory approach of former SEC Chair Gary Gensler, who was widely criticized by the Web3 community for his aggressive, enforcement-heavy oversight of digital assets.

A Complete Reversal of Biden-Era Crypto Policies

Beyond establishing the regulatory group, Trump’s directive formally guarantees the rights of individuals to access, use, develop, and conduct transactions on public blockchain networks, legally cementing these activities under federal protection.

Dismantling the 2022 Regulatory Framework

This executive action systematically dismantles the cryptocurrency policies established under the Biden administration. Specifically, Trump’s order repeals a 2022 executive order signed by former President Joe Biden, which focused heavily on mitigating consumer risks and regulating the underlying blockchain infrastructure. Additionally, the new directive nullifies a 2022 Treasury Department framework that governed international collaboration on digital asset development.

While the previous administration prioritized risk management and global regulatory alignment, Trump’s updated policy framework pivots sharply toward economic liberty and preserving American financial sovereignty.

Rejecting Central Bank Control in Favor of Stablecoins

One of the most significant policy shifts in the new executive order is the explicit prohibition of a U.S. Central Bank Digital Currency (CBDC). Under this directive, the federal government is barred from creating a centralized, state-controlled digital dollar. Instead, the administration plans to actively promote privately issued, U.S. dollar-backed stablecoins, aiming to leverage private sector innovation to cement the greenback’s dominance in global trade and digital finance. Through these measures, Trump is signaling a firm commitment to keeping the broader cryptocurrency ecosystem decentralized.

The Memecoin Controversy and Market Risks

The policy shift comes amid intense scrutiny, as Trump launched a memecoin called $TRUMP just days before his official inauguration. By Thursday afternoon, the token’s market valuation had soared to an impressive $6.84 billion. However, ethics watchdogs and financial critics have raised alarms, warning that the president’s personal financial venture erodes boundaries between public office and private business interests. Some market analysts have even cautioned that the asset exhibits the hallmarks of a volatile pump-and-dump scheme.

Balancing Innovation with Financial Security

Historically, federal administrations have treated the digital asset sector with extreme caution, citing its susceptibility to illicit financial activities, including ransomware demands and money laundering. The catastrophic collapse of the FTX exchange remains a prominent warning of these dangers, having exposed widespread fraud, systemic misappropriation of user funds, and a severe lack of regulatory oversight.

Nevertheless, many industry advocates argue that the FTX failure highlights the urgent need for tailored, clear regulations rather than outright restriction. Companies like Chainalysis are already working to rebuild institutional trust in the market by developing advanced compliance and transaction-tracking software to monitor virtual currency flows effectively.