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This is a segment from the Forward Guidance newsletter. To read full editions, <\/em>subscribe<\/em><\/a>.<\/em><\/p>\n President Trump yesterday issued his first crypto executive order<\/a>.\u00a0<\/p>\n The news and ensuing chaos on Crypto Twitter reminded me of Biden\u2019s crypto executive order<\/a>, published in March 2022.\u00a0<\/p>\n Let\u2019s take a trip down memory lane. Here\u2019s what Trump\u2019s report says, and how it differs from Biden\u2019s plans:\u00a0<\/p>\n Trump\u2019s order prohibits federal agencies from establishing, issuing or promoting central bank digital currencies. It calls for any ongoing projects creating a CBDC to be \u201cimmediately terminated.\u201d\u00a0<\/p>\n CBDCs \u201cthreaten the stability of the financial system, individual privacy and the sovereignty of the United States,\u201d Trump\u2019s order reads.\u00a0<\/p>\n Biden was less resolute on the topic. His administration struck a bit of a middle ground<\/a>, saying they saw \u201cmerit\u201d to a US CBDC but also acknowledged \u201cpotential risks and downsides to consider.\u201d In the end, Biden directed agencies to create a report on the future of money and payment systems.\u00a0<\/p>\n We eventually got this report<\/a>, which, like Biden\u2019s executive order, said little definitively. The Treasury recommended \u201cadvancing\u201d work on a CBDC and \u201cprioritizing\u201d improvements to cross-border payments. Spoiler alert, a CBDC was never developed.\u00a0<\/p>\n When it comes to security, Biden and Trump hold very different views on how to approach digital assets.\u00a0<\/p>\n Biden\u2019s order focused on protecting consumers from the risks associated with investing and engaging with crypto. He also highlighted national security concerns, calling digital assets a threat to financial stability and a tool ripe for abuse from illicit actors.\u00a0<\/p>\n Trump\u2019s EO also includes the term \u201cprotection,\u201d but his administration is concerned with maintaining US dollar dominance and shielding citizens from the dangers of CBDCs.\u00a0<\/p>\n Trump\u2019s order established a Working Group on Digital Asset Markets, to be led by \u201ccrypto czar\u201d David Sacks<\/a>.\u00a0<\/p>\n Included in this group are the chairs of the CFTC and SEC, attorney general and secretaries of the Treasury and Homeland Security, among other cabinet members.\u00a0<\/p>\n Trump\u2019s Working Group \u201cshall evaluate the potential creation and maintenance of a national digital asset stockpile<\/a> and propose criteria for establishing such a stockpile, potentially derived from cryptocurrencies lawfully seized by the federal government through its law enforcement efforts.\u201d\u00a0<\/p>\n As one source on the Hill told me last night, this is a long way of saying the \u201cstrategic bitcoin reserve<\/a> is going to live in bureaucratic purgatory for a long time, maybe forever.\u201d\u00a0<\/p>\n Biden did not create any such working group, or any crypto-specific advisory council. But he did task the President\u2019s Working Group on Financial Markets to create a report outlining the various risks of digital assets.\u00a0<\/p>\n This report noted that crypto can pose a threat to financial stability, and it recommended Congress pass legislation designating rulemaking authority to appropriate agencies (something like a market structure bill, for example.)<\/p>\n Spoiler: This, too, has lived in political limbo for years.\u00a0<\/p>\n Only time will tell if this latest crypto executive order inspires more progress than Biden\u2019s.\u00a0<\/p>\n But it\u2019s worth noting that the industry excitement around Trump\u2019s EO bodes well. Never underestimate what some well-funded lobbyists can get done on Capitol Hill.<\/p>\n Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter<\/a>.<\/strong><\/p>\n Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter<\/a>.<\/strong><\/p>\n Get alpha directly in your inbox with the 0xResearch newsletter<\/a> \u2014 market highlights, charts, degen trade ideas, governance updates, and more.<\/strong><\/p>\n
\nOn CBDCs<\/h2>\n
On \u201cprotection\u201d<\/h2>\n
The Working Group<\/h2>\n
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