Trump Signs Crypto Executive Order: What Investors Need to Know

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President Trump signed Executive order On Thursday, he touted US leadership in digital assets and created a working group that would get to propose regulations for the crypto industry.

The news sent prices of popular cryptocurrencies higher in trading on Friday. Bitcoin rose more than 1.5 percent to $105,880, while… ethereum It rose nearly 5 percent to $3,397.

Here’s what investors should know about Trump’s executive order.

Cryptography Executive Order: What to Know

Trump signed an executive order designed to strengthen US leadership in digital assets and financial technology.

Below are the key initiatives included in the ranking:

• The Trump administration’s policy will be to support responsible growth and use of digital assets, blockchain technology, and related technologies.
• It creates a working group on digital asset markets that is chaired by the Special Advisor on AI and Crypto.
• The working group will evaluate the potential creation of digital asset stocks, possibly from cryptocurrencies seized by the federal government through law enforcement efforts.
• Within 180 days of the order, the working group must recommend regulatory and legislative proposals for the digital asset industry.
• The order ends any ongoing plans to create a central bank digital currency.
• It aims to protect and promote fair and open access to banking services for all law-abiding individuals and private entities.

Trump extracted significant support from the crypto industry during the 2024 presidential election and crypto prices rose after his electoral victory on the expectation that he would appoint a suitable crypto regulator to key positions.

Just days before his inauguration, A $Trump Meme Coin Which initially rose in value. First Lady Melania Trump launched a meme coin that surged upon launch. The $Trump coin is down 56 percent from its high, while the $Melania coin is down 81 percent from its high.

Crypto industry observers are not optimistic that the executive order will lead to regulations that help rid the industry of bad actors.

“Any crypto regulation should actually protect investors rather than defend the ability of cryptocurrency issuers to ply the public with yet another useless digital currency,” says James Royal, chief wealth management correspondent at Bankrate. “Given the crypto industry’s significant donations to the Trump campaign and the Trump family’s personal stake in newly launched cryptocurrencies, I am not optimistic that any regulation proposed here will do much more than pave the way for approved fraud.”

Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. Additionally, investors are advised that past performance of investment products is no guarantee of future price appreciation.