Trump signs order supporting cryptocurrency; SEC abolishes SAB 121 and creates cryptocurrency task force

The recent developments in the digital asset landscape in the United States have been significant, with the Trump administration taking steps to ensure the country remains a global leader in blockchain innovation. President Trump signed an executive order titled “Strengthening American Leadership in Digital Financial Technology” on January 23, 2025. This order aims to protect the rights of individuals and entities in the U.S. to access and use public blockchain networks, develop blockchain software, engage in crypto mining, and exercise self-custody of digital assets. Additionally, the order mandates fair access to banking services for law-abiding individuals and businesses in the digital asset space, ending what some have called “Operation Chokepoint 2.0.”

One key provision of the executive order is the promotion of dollar-backed stablecoins to maintain the dominance of the U.S. dollar in the digital financial realm. Interestingly, the order also explicitly bans the establishment or issuance of Central Bank Digital Currencies (CBDCs) in the United States, citing concerns over government overreach and financial privacy implications. Furthermore, the order revokes key components of the Biden administration’s 2022 digital asset policy, including previous executive orders and frameworks for international engagement on digital assets.

To implement these provisions effectively, a Presidential Working Group has been created, chaired by the newly appointed “AI and Crypto Czar” David Sacks. This group includes members from various government entities and is tasked with developing risk management strategies, regulatory recommendations, and innovative ideas such as a “national crypto reserve” sourced from seized assets. The group aims to produce comprehensive regulatory proposals for digital assets and stablecoins within 180 days.

The SEC, under Acting Chair Mark Uyeda, has also made significant changes in its regulatory approach. The first major announcement was the repeal of Staff Accounting Bulletin 121 (SAB 121), which required companies holding digital assets for customers to recognize these holdings as liabilities on their balance sheets. The repeal of SAB 121 allows banks and financial institutions to provide custody services for crypto assets without the added complexity and cost.

In addition to repealing SAB 121, the SEC has formed a dedicated crypto task force led by Commissioner Hester Peirce. The task force’s mandate is to develop a clear regulatory framework for digital assets that focuses on fostering innovation while ensuring investor protection. This marks a shift in the SEC’s approach from stringent regulation to constructive engagement with the crypto industry. The task force aims to offer clear guidelines for the registration of crypto projects, develop disclosure frameworks for tokens, and implement a regulatory sandbox approach to support emerging blockchain technologies.

Overall, these recent developments indicate a significant shift in the regulatory landscape for digital assets in the United States. The actions taken by the Trump administration and the SEC demonstrate a commitment to promoting innovation while ensuring a safe and secure environment for investors and businesses in the digital asset space. By repealing outdated regulations and forming pro-innovation task forces, the U.S. is poised to remain a global leader in blockchain technology and digital financial innovation.