The first executive order of Trump's administration on encryption: 10 key points on stablecoins, national reserves, etc.

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Author: Golden Finance

On January 23, 2025, US President Trump issued the first executive order on encryption. The 10 key points are as follows:

1. Protecting and promoting the ability of citizens, individuals, and private sectors to access and use public chains

2. US citizens can develop and deploy software, participate in mining and validation, conduct transactions, and self-custody digital assets

3. Promote and protect the sovereignty of the US dollar, and promote the development and growth of stablecoins supported by the US dollar

4. Protect and promote fair and open access to banking services for all law-abiding citizens and private sector entities.

5. Provide regulatory clarity and certainty

6. Protecting Americans from the risks of CBDC, prohibiting the establishment, issuance, circulation, and use of CBDC within the jurisdiction of the United States

**7. Repeal Executive Order No. 14067 "Ensuring Responsible Development of Digital Assets" and the Ministry of Finance's "International Participation Framework for Digital Assets"

8. Establishment of the Presidential Digital Asset Market Working Group

9. Propose a federal regulatory framework to oversee the issuance and operation of digital assets (including stablecoins) in the United States

10. Evaluate the possibility of establishing and maintaining a national digital asset reserve, and propose standards for establishing such reserves

The full text of the executive order is as follows:

Strengthening the United States' leadership position in digital financial technology

In accordance with the powers vested in me by the Constitution and the laws of the United States, and in order to promote America's leadership in the field of digital assets and financial technology, while safeguarding economic freedom, I hereby issue the following directive:

Section 1 Objectives and Policies

(a) The digital asset industry plays a crucial role in innovation, economic development in the United States, and our country's international leadership. Therefore, the policy of this administration is to support responsible growth and use of digital assets, blockchain technology, and related technologies in all economic sectors, including:

(i) Protect and promote the ability of citizens, individuals, and private sector entities to access and use open public blockchain networks without persecution, including the ability to develop and deploy software, participate in mining and validation, transact with others without illegal censorship, and maintain self-custody of digital assets;

(ii) Promote and protect the sovereignty of the US dollar, including by taking actions to promote the development and growth of stablecoins globally supported by the US dollar.

(3) Protect and promote the fair and open access to banking services for all law-abiding citizens and private sector entities;

(iv) Provide regulatory clarity and certainty through technology-neutral legislation, frameworks that consider emerging technologies, transparent decision-making, and clear judicial regulatory boundaries, all of which are crucial for supporting a vibrant and inclusive digital economy, as well as innovation in digital assets, permissionless blockchains, and distributed ledger technologies.

(v) Take measures to protect Americans from the risks of central bank digital currencies (CBDC), which threaten the stability of the financial system, personal privacy, and US sovereignty, including prohibiting the establishment, issuance, circulation, and use of CBDC within the US jurisdiction.

Section 2 Definition

(a) For the purposes of this Order, the term "digital asset" refers to any digital representation of value recorded on a distributed ledger, including cryptocurrencies, digital tokens, and stablecoins.

(b)The term "blockchain" refers to any technology involving data:

(i) Share within the network, establish a public ledger of verified transactions or information among network participants;

(ii) Use encryption technology to connect and maintain the integrity of the public ledger and perform other functions;

(iii) is distributed to network participants in an automated manner, in order to simultaneously update the public ledger status of network participants and any other functions; and

(iv) Consists of source code that is publicly available.

(c) "Central bank digital currency" refers to digital currency or currency value form valued in the national accounting unit, which is a direct liability of the central bank.

Section 3 Revocation of Executive Order No. 14067 and the Treasury Department framework

(a) Hereby revoked Administrative Order No. 14067 of March 9, 2022 (Ensuring Responsible Development of Digital Assets).

(b) Instruct the Minister of Finance to immediately revoke the "International Participation Framework for Digital Assets" issued by the Ministry of Finance on July 7, 2022.

(c) In accordance with Executive Order No. 14067 and all policies, instructions, and guidance issued by the Ministry of Finance's International Participation Framework for Digital Assets, if they conflict with the provisions of this order, they are hereby revoked or may be revoked at the discretion of the Minister of Finance.

(d) The Minister of Finance should take all necessary measures to ensure compliance with the policies stipulated in this order.

Section 4 Establishment of the Presidential Digital Asset Market Working Group

( a) The President's Digital Asset Market Working Group (the Working Group) is hereby established within the National Economic Council. The Working Group shall be chaired by the Special Advisor on Artificial Intelligence and Cryptography (the Chair). In addition to the Chair, the Working Group shall also include the following officials or their designated personnel:

(1) Minister of Finance;

(2) Attorney General;

(3) Minister of Commerce;

(IV) Minister of Homeland Security;

(5) Director of Administration and Budget Office;

(6) Assistant to the President for National Security Affairs;

(vii) Assistant to the President for Economic Policy (APEP);

(8) Presidential Science and Technology Assistant;

(ix) National Security Advisor;

(x) Chairman of the Securities and Exchange Commission; and

(Eleven) Chairman of the Commodity Futures Trading Commission

Committee.

  1. Where appropriate and in accordance with applicable law, the Chairperson may, in accordance with the relevance of his or her expertise and duties, invite the heads of other administrative departments and agencies (agencies) or other senior officials within the Office of the President to participate in the meetings of the Working Group.

(b) Within 30 days from the date of this Order, the Ministry of Finance, the Ministry of Justice, the Securities and Exchange Commission, and other relevant agencies (including their heads in the working group) shall identify all regulations, guidance documents, orders or other items that affect the field of digital assets. Within 60 days from the date of this Order, each agency shall submit proposals to the Chairperson, stating whether each identified regulation, guidance document, order or other item should be revoked or modified, or, for items outside the scope of regulations, whether they should be adopted in regulations.

(c) Within 180 days from the date of this Order, the working group shall submit a report to the President through APEP, which shall put forward regulatory and legislative proposals to advance the policies established by this Order. In particular, the report should focus on the following aspects:

(i) The working group should propose a federal regulatory framework for the issuance and operation of US digital assets, including stablecoins. The working group's report should consider provisions for market structure, supervision, consumer protection, and risk management.

(ii) The working group should assess the possibility of establishing and maintaining a national digital asset reserve, and propose standards for such reserves, which may come from cryptocurrencies lawfully seized by federal law enforcement operations.

(d) The Chairman shall designate a working group director responsible for coordinating the day-to-day work of the working group. The working group should consult with the National Security Council on issues involving national security.

(e) Under appropriate and lawful circumstances, the working group should hold public hearings and seek the individual expertise of digital asset and digital market leaders.

Section 5 prohibits central bank digital currencies.

(a) Except to the extent required by law, the Agency is hereby prohibited from taking any action to establish, issue, or promote a CBDC within or outside the United States.

(b) Any institution's ongoing plans or actions related to the creation of CBDC within the jurisdiction of the United States, beyond the scope required by law, should be terminated immediately and no further action should be taken to develop or implement such plans or actions.

Section 6 Clause Independence

(a) If any provision of this order or any provision applicable to any person or circumstance is determined to be invalid, the remaining portions of this order and their applicability to any other person or circumstance shall not be affected.

Section Seven General Provisions

(a) Any content of this command shall not be construed as damaging or otherwise affecting:

(i) The law grants the executive branch, agencies, or their heads the power; or

(ii) The functions related to budget, administrative or legislative proposals of the Office of Management and Budget Director.

(b) The implementation of this command shall comply with applicable laws and be subject to funding circumstances.

(c) This command is not intended to and will not create any rights or benefits, whether substantive or procedural, enforceable by any party against the United States, its departments, agencies, or entities, its officials, employees, or agents, or any other person, under any law or equity.

January 23, 2025, the White House

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