President Donald Trump has issued an executive order aimed at bolstering the growth of the cryptocurrency industry, a sector in which he holds significant personal financial stakes. The order, unveiled on Thursday, signals a shift in federal policy toward digital assets, with promises of “responsible growth” and regulatory reform.
The executive order announced the creation of a working group on digital assets tasked with devising a comprehensive plan for cryptocurrency regulation. The plan will include “regulatory and legislative proposals” and explore the possibility of establishing a national cryptocurrency stockpile, a government-controlled reserve of digital coins—a concept heavily lobbied for by industry leaders.
“The digital asset industry plays a crucial role in innovation and economic development in the United States, as well as our nation’s international leadership,” the executive order stated. “It is therefore the policy of my administration to support the responsible growth and use of digital assets.”
Trump’s Crypto Ventures Under Scrutiny
Trump’s personal involvement in the cryptocurrency sector has raised ethical concerns. In 2024, the Trump family co-founded World Liberty Financial, a cryptocurrency company offering a new digital currency, WLFI. Earlier this year, both Trump and his wife, Melania, launched their own memecoins, sparking criticism from ethics watchdogs over potential conflicts of interest.
“Trump is essentially crafting policies that could directly benefit his business ventures,” said Molly White, a cryptocurrency researcher. White also described the executive order as “mostly symbolic,” noting that no federal agency has seriously considered creating a central bank digital currency, a concept Trump explicitly prohibited in the order.
Regulatory Shake-Up
Since taking office, Trump has vowed to reverse what he calls the Biden administration’s “war on crypto,” pledging to make the United States the “crypto capital of the planet.” In December, Trump appointed a new chair of the Securities and Exchange Commission (SEC) known for close ties to the crypto industry. He also tapped venture capitalist David Sacks, a digital currency enthusiast, to oversee policies on cryptocurrency and artificial intelligence.
The executive order also promises “fair and open access to banking services” for crypto firms, addressing long-standing complaints from the industry about banks denying them services. However, the order stopped short of directing federal agencies to drop ongoing lawsuits against cryptocurrency companies or initiating government purchases of bitcoin—key industry demands.
Memecoin Controversy
Trump’s foray into the cryptocurrency market intensified on Friday when he announced the launch of a memecoin called $Trump. The coin’s sales skyrocketed, temporarily inflating Trump’s net worth by billions on paper. Just two days later, Melania Trump announced her own memecoin, $Melania, causing market volatility and prompting outrage from crypto traders who claimed to have suffered financial losses.
Despite the backlash, Trump continues to enjoy strong support from the cryptocurrency industry, which invested over $130 million into key congressional races during his campaign. Crypto executives are lobbying aggressively for legislation that would weaken SEC oversight and boost digital asset prices.
Industry Optimism Amid Ethical Concerns
While Trump’s crypto-friendly policies have drawn criticism from ethics experts, the industry remains optimistic. “The digital asset industry sees an opportunity to grow under Trump’s administration, but the risks of conflicts of interest and market manipulation are significant,” White warned.
The executive order is expected to accelerate debates about cryptocurrency regulation in Congress, where Trump’s allies and industry advocates will likely push for less restrictive policies. However, critics caution that the president’s personal investments could complicate efforts to ensure fair and transparent oversight of the burgeoning crypto sector.