Trump’s cryptocurrency Executive Order is history in the making
DONALD Trump is reportedly to sign an Executive Order on cryptocurrency on 'Day One' of his presidency – and it’s poised to mark a transformative moment in financial history.
This directive signals the beginning of a new era where digital assets move from the periphery to the core of economic strategy. It’s a bold acknowledgment that blockchain technologies are not just innovations but integral to the global financial system’s future.
The timing of this move carries significant implications for the US’s economic leadership and competitiveness on the global stage.
Throughout history, executive orders have often served as instruments of transformative change. Franklin D. Roosevelt’s Executive Order 6102, issued during the Great Depression, forced Americans to exchange their gold for US dollars, fundamentally altering the nation’s monetary policy and anchoring the dollar’s dominance in the global economy.
Similarly, the likely forthcoming Order has the potential to redefine financial norms by signalling the institutionalisation of digital assets. This moment stands as a parallel to pivotal shifts of the past, where decisive governmental action steered the financial system into uncharted territories.
For years, US crypto regulation has been mired by ambiguity and fragmentation.
Agencies like the regulators the SEC and the CFTC have often taken conflicting stances on digital assets, leaving businesses and investors in regulatory limbo. This lack of clarity has stifled innovation and driven talent and capital offshore.
Trump’s decision to establish a presidential crypto council seeks to end this impasse by creating a unified strategy. This council, composed of industry leaders and policymakers, aims to provide a cohesive framework for the crypto industry, enabling innovation while safeguarding stakeholders. Such a move underscores a clear commitment to solidifying the US’s position as a global leader in digital finance.
One of the most significant aspects of the executive order is its potential to repeal SAB 121—a regulation that has long discouraged US banks from engaging with cryptocurrencies.
This rule has been a major impediment to institutional adoption, keeping the US financial sector at a disadvantage compared to global competitors.
By directing the SEC to eliminate this restriction, Trump’s Order will, I believe, unlock a wave of institutional participation. Banks, freed from regulatory constraints, may finally integrate cryptocurrencies into their portfolios, adding legitimacy to the sector and bolstering the US’s competitiveness in the global financial arena.
This move echoes historical precedents of financial evolution. Consider the deregulatory initiatives of the 1980s, which liberalised capital markets and positioned the US as the preeminent hub of global finance. Trump’s reported Executive Order could have a similarly transformative effect, opening the floodgates for innovation and investment in blockchain and digital assets.
The international dimension of the order is equally critical. By instructing the Secretary of State to coordinate globally on crypto innovation, the US acknowledges the competitive strides being made by countries like China in blockchain technology.
A proactive stance from the US could prevent it from falling behind and instead position it as a standard-setter in this transformative sector.
Critics may view this agenda as politically motivated, targeting a tech-savvy electorate. While political calculus may play a role, it doesn’t diminish the transformative potential of the policies proposed or the historical significance in its recognition of the shifting global financial system.
Indeed, the implications will be felt for decades to come.
Nigel Green, deVere Group CEO and Founder
