Strengthening American Leadership in Digital Financial Technology

Web3 & BlockchainDigital IDBanking & Institutions

The President's Working Group on Digital Asset Markets has released recommendations to strengthen American leadership in digital financial technology, marking a significant step forward in the development of this rapidly evolving field.

TL;DR
• The President's Working Group on Digital Asset Markets has released recommendations to strengthen American leadership in digital financial technology.
• The recommendations aim to promote responsible growth and use of digital assets, blockchain technology, and related technologies.
• The President's Working Group on Digital Asset Markets will be structured to include representatives from various government agencies and departments.

Summary
The White House issued an executive order on January 23, 2025, to strengthen leadership in financial technology. The order revokes prior guidance, establishes a working group, and sets a clear stance against central bank digital currencies while promoting blockchain access.
• Revocation of Executive Order 14067 and Treasury framework
• Creation of President’s Working Group on Digital Asset Markets
• Prohibition of Central Bank Digital Currencies (CBDCs)
• Mandate for comprehensive regulatory review and public hearings

Key actions include revoking Executive Order 14067 and the Treasury’s 2022 framework, thereby removing conflicting regulations. A President’s Working Group on Digital Asset Markets is created within the National Economic Council, chaired by the Special Advisor for AI and Crypto. The group will convene senior officials from Treasury, Justice, Commerce, Homeland Security, OMB, and regulatory bodies such as the SEC and CFTC. Within 30 days, agencies must inventory all digital‑asset‑related rules for review.

The order mandates a comprehensive regulatory review within 60 days, with each agency submitting recommendations on whether to rescind, modify, or adopt new regulations. The Working Group will draft a federal framework covering issuance, market structure, oversight, consumer protection, and risk management for digital assets and stablecoins. It will also assess the feasibility of a national digital asset stockpile derived from law‑enforced seizures, setting criteria for acquisition and storage.

A decisive prohibition on Central Bank Digital Currencies (CBDCs) is imposed, banning any U.S. agency from establishing, issuing, or promoting a CBDC domestically or abroad. Existing CBDC initiatives must be terminated immediately, and no further development is allowed. This stance protects financial stability, individual privacy, and national sovereignty by preventing a direct central bank liability that could undermine the existing monetary system.

The Working Group will conduct public hearings and engage industry experts to ensure transparency and inclusivity. Recommendations will be submitted to the President within 180 days, focusing on market regulation, consumer safeguards, and risk mitigation. The order also preserves existing executive authority and budgetary functions, ensuring implementation aligns with law and appropriations. By aligning policy with technology neutrality, the administration seeks to foster innovation while safeguarding economic liberty and national security.

The revocation of Executive Order 14067 and the Treasury framework signals a shift toward a more streamlined, technology‑neutral regulatory environment. By removing overlapping mandates, the administration aims to reduce compliance burdens for startups and established firms alike. The new framework will prioritize clear jurisdictional boundaries, transparent decision‑making, and well‑defined consumer protections, thereby encouraging broader participation in the digital asset ecosystem while maintaining robust oversight.

As the digital asset market continues to evolve, it is essential to prioritize responsible growth and use of digital assets, blockchain technology, and related technologies to ensure a strong and sustainable future for American leadership in digital financial technology.