Breaking: Trump Executive Order Bans US CBDC, Backs Dollar Stablecoins, Orders Federal Crypto Framework

WASHINGTON — President Donald Trump signed Executive Order 14178, “Strengthening American Leadership in Digital Financial Technology,” on January 23, 2025, establishing the federal government’s foundational digital asset policy. The order was published in the Federal Register on January 31, 2025.

The EO directs three principal actions: it prohibits federal agencies from establishing, issuing, or promoting a US central bank digital currency (CBDC); it declares a policy of promoting the growth of lawful, dollar-backed stablecoins worldwide to protect US dollar sovereignty; and it establishes the President’s Working Group on Digital Asset Markets within the National Economic Council, tasked with recommending a comprehensive federal regulatory framework for digital assets.

The order revoked Executive Order 14067 (March 2022) and the Treasury Department’s Framework for International Engagement on Digital Asset Technologies, the Biden-era policy architecture. It also states a policy of protecting the ability of individuals and businesses to access public blockchains, engage in mining and validating, and self-custody digital assets. Agencies were given 30 days to identify existing regulations touching digital assets and 60 days to recommend rescission or modification, with the Working Group directed to report within 180 days.

Implications: EO 14178 set the policy baseline that SEC, CFTC, and Treasury actions have followed since. The CBDC prohibition removed a live policy question from the agenda, while the dollar-stablecoin directive positioned payment stablecoins as an instrument of dollar policy rather than a regulatory problem — a framing that shaped subsequent stablecoin legislation and rulemaking. The deregulatory review mandate signaled a retreat from regulation-by-enforcement toward rule-based clarity.

What’s next: The Working Group’s recommendations continue to drive agency rulemaking across the SEC, CFTC, and Treasury. Practitioners should track implementing rules rather than the order itself, which is directive rather than self-executing.

This content is for informational purposes only and does not constitute legal advice. Consult with a qualified US attorney for guidance specific to your situation.