Within 180 days of the order, the group is required to submit a report to the president recommending regulatory and legislative proposals for digital assets. The order also directs the group to propose a “regulatory framework governing the issuance and operation of digital assets, including stablecoins in the United States,” and “evaluate the potential creation and maintenance of a national digital asset stockpile,” which Sen. Cynthia Lummis, R-Wyo., previously floated via legislation.
In May, the House passed a bill that would give the CFTC new authority over digital commodities, while maintaining the SEC’s authority over digital securities, among other things. However, that bill never made it to the Senate floor, meaning it would need to be reintroduced in this Congress.
Republican committee leaders previously said they’re optimistic about passing such a bill in 2025 and reiterated those plans in reaction to the executive order.
House Financial Services Committee Chair French Hill, R-Ark., and Rep. Bryan Steil, R-Wis., who chairs the House Digital Assets Subcommittee, said in a joint Jan. 24 statement, “We look forward to working with the Trump administration as we coordinate on crafting legislation to provide much-needed clarity and protections for consumers and investors while securing the United States as the trailblazer in digital financial innovation.”
“I look forward to partnering with President Trump and his team to bring clarity, choice, and opportunity to this important sector of our 21st-century economy,” Senate Banking Committee Chair Tim Scott, R-S.C., said in a Jan. 23 statement.
Michael Pedroni, founder and CEO of Highland Global Advisors, a consulting firm for financial services and technology firms navigating U.S. and European regulations, told Pensions & Investments that the order is “exactly what we think needs to be done in order to get the ball rolling on this.”
“The executive branch has more capacity to get this done quickly in the short term,” added Pedroni, who was formerly a senior staffer at the Treasury Department and previously worked at the Investment Company Institute and Managed Funds Association.
Separately, the executive order also prohibits federal agencies “from undertaking any action to establish, issue or promote,” central bank digital currencies in the U.S. or abroad. The House passed a bill in May to prohibit the Federal Reserve from issuing such a currency, also known as a CBDC, without congressional authorization, though the bill never moved in the Senate.
Michael Barr, the Fed’s vice chair for supervision, said in September 2023 that the central bank had “made no decision on issuing a CBDC” and would only do so “with clear support from the executive branch and authorizing legislation from Congress.”