President Trump’s administration has embraced digital finance with a January 2025 executive order promoting cryptocurrency innovation. This shift includes the launch of USD1, a new dollar-pegged stablecoin backed by treasury bills. The administration has established a working group led by David Sacks to develop regulatory proposals and banned CBDCs while building a Strategic Bitcoin Reserve. These moves align with Trump’s goal to make America a “crypto capital.”
President Trump has plunged into the world of digital finance with a series of bold moves since returning to the White House. In January 2025, he signed an executive order called “Strengthening American Leadership in Digital Financial Technology.” This order promotes U.S. leadership in blockchain and digital assets while reversing policies from the Biden administration.
The executive order creates a new working group within the National Economic Council focused on digital asset markets. David Sacks, Trump’s Special Advisor for AI and Crypto, chairs this group. It includes officials from the Treasury, Justice Department, and SEC. The working group aims to create a technology-neutral framework for digital asset regulation that balances innovation with consumer protection. The group must provide regulatory proposals within 180 days.
A key part of Trump’s digital finance strategy is World Liberty Financial’s launch of USD1, a stablecoin announced on March 25, 2025. This digital currency is worth exactly one U.S. dollar and is backed by short-term government treasuries. BitGo holds these reserves, and the stablecoin works on both Ethereum and Binance Smart Chain blockchains.
Trump’s executive order also prohibits the development of central bank digital currencies (CBDCs) in the U.S. Instead, it promotes dollar-backed stablecoins like USD1. The order guarantees that digital asset companies have fair access to banking services. Trump’s administration has focused significantly on promoting stablecoin adoption to improve cross-border transaction efficiency.
Breaking from the CBDC trend, Trump champions private stablecoins while ensuring crypto companies receive fair banking treatment.
On March 6, 2025, Trump established a Strategic Bitcoin Reserve using bitcoin forfeited to the Treasury. This reserve, along with a U.S. Digital Asset Stockpile for other digital currencies, aims to position America as a leader in government digital asset strategy.
Trump Media has partnered with Crypto.com to launch ETFs that include digital assets and “Made in America” securities. These moves align with Trump’s campaign promise to make the U.S. the “crypto capital” and “Bitcoin superpower” of the world.
Before returning to office, Trump had already shown personal interest in cryptocurrency by launching his own digital currency called $Trump. His administration’s policies now reflect this enthusiasm on a national scale.
