U.S. President Donald J. Trump signed an executive order on Thursday establishing a new federal working group focused on cryptocurrency policy, signaling a significant shift in Washington’s approach to digital assets.
The working group, comprised of officials from the Treasury Department, the Federal Reserve, the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC), will be tasked with developing a cohesive regulatory framework for the rapidly growing cryptocurrency industry.
President Donald Trump (Photo by Scott Olson/Getty Images)
In a statement, Trump called the move “a bold step to ensure that America remains a leader in technological innovation while safeguarding consumers and national security.”
“Cryptocurrencies and blockchain technology hold immense promise, but they also pose challenges that we must address head-on,” Trump said. “This working group will provide clarity and coordination as we move forward in this new frontier.”
The executive order comes amid growing calls for clearer regulations on digital assets as the industry faces increased scrutiny over issues such as market volatility, fraud, and its potential use in illicit activities. The working group will also examine the potential benefits of a U.S. central bank digital currency (CBDC).
Market Reaction Bitcoin, the world’s largest cryptocurrency, rose 5% following the announcement, while Ethereum gained 4%, reflecting optimism among investors that a structured approach to regulation could boost mainstream adoption of digital currencies.
Industry leaders welcomed the move.
“This is a critical step forward for the U.S.,” said Kathryn Ross, CEO of the Blockchain Association. “By bringing key stakeholders to the table, the administration is demonstrating its commitment to fostering innovation while addressing legitimate concerns.”
Partisan Divide While the announcement was praised by many in the tech and financial sectors, it also drew criticism from some lawmakers. Senate Majority Leader Kamala Harris (D-CA) voiced skepticism about the potential risks of legitimizing cryptocurrencies without sufficient consumer protections.
“We must ensure that this is not a giveaway to big tech and Wall Street,” Harris said in a statement. “The focus must remain on safeguarding ordinary Americans and preventing misuse of these technologies.”
Republicans, however, applauded the move, with Senator Ted Cruz (R-TX) describing it as “leadership that’s been long overdue.”
Global Context The executive order places the U.S. in line with other major economies that are actively crafting cryptocurrency policies. The European Union recently implemented its Markets in Crypto-Assets (MiCA) regulation, and China has already launched its digital yuan.
Analysts say the initiative could enhance America’s competitiveness in the global digital economy.
“This is an opportunity for the U.S. to shape the future of the global financial system,” said Michael Stevens, a senior analyst at the Atlantic Council.
The working group is expected to deliver an initial report to the President within 180 days, outlining recommendations for regulatory and legislative actions.
