CBDCs banned: Trump’s crypto plan unveiled

US President Donald Trump signed a landmark executive order Thursday, banning the creation of central bank digital currencies (CBDCs) and laying the foundation for sweeping changes in how the country approaches cryptocurrency.

The order, titled “Strengthening American Leadership in Digital Financial Technology,” underscores a pivot toward empowering private innovation while addressing long-standing regulatory challenges faced by the crypto industry.

The ban on CBDCs is the most prominent policy shift in the executive order. While no federal agency had been actively pursuing such a currency, the prohibition reflects growing opposition among privacy advocates and crypto supporters, who view government-backed digital currencies as a threat to financial autonomy.

“This administration believes in empowering the private sector, not expanding government control,” Trump stated during the World Economic Forum in Davos.

CBDCs have been criticized for enabling surveillance and centralized financial oversight, contrasting with the decentralized ethos of cryptocurrencies like Bitcoin. The decision aligns Trump with ideological opponents of centralized digital systems, signaling a broader push to protect private-sector innovation.

Supporting fair banking access

Another significant provision addresses crypto companies' struggle to access traditional banking services. The order promises to ensure "fair and open access" to banking, a move intended to resolve industry complaints about discrimination from financial institutions.

Trump’s promise to remove barriers comes as part of his administration’s commitment to fostering a more supportive environment for digital assets. Shortly after the executive order’s release, the Securities and Exchange Commission (SEC) eased accounting guidance that had previously discouraged banks from engaging with crypto companies.

National crypto stockpile

The order also proposes creating a national cryptocurrency stockpile—a first-of-its-kind reserve of digital assets controlled by the US government. While the details remain vague, industry leaders have long lobbied for such a reserve, arguing it could strengthen the country’s financial resilience and demonstrate a serious commitment to digital finance.

Trump previously floated the idea at a Bitcoin conference last summer, and the Presidential Working Group on Digital Asset Markets—led by venture investor and crypto advocate David Sacks—will explore its feasibility.

Industry and regulatory shifts

The executive order stops short of ordering federal agencies to drop lawsuits against crypto firms or directly investing in Bitcoin, which some had hoped for. However, it represents a dramatic shift from the regulatory posture of the Biden administration, which had been criticized for stifling the industry.

The crypto sector has celebrated Trump’s embrace of digital assets. Hours before his inauguration Monday, Bitcoin’s price surged to an all-time high of $109,000, reflecting market optimism about his administration’s stance.

Despite industry excitement, the order has drawn criticism for potential conflicts of interest. Trump and his family have financial stakes in World Liberty Financial, a crypto company they co-founded last year, as well as in their recently launched memecoins, $Trump and $Melania.

Critics argue that Trump’s policymaking could directly benefit his business ventures, though his administration has defended its policies as a necessary step to restore US leadership in digital finance.

With this order, the US signals a significant shift in its crypto strategy, banning CBDCs while promoting a supportive regulatory environment for private innovation. As the Presidential Working Group develops its recommendations, the crypto industry will be watching closely to see if Trump’s promises of a crypto-friendly America translate into lasting change.