Trump Bans U.S. Central Bank Digital Currency
- Main event, leadership changes, market impact, financial shifts, or expert insights.
- Trump’s Executive Order bans CBDC issuance.
- Bipartisan legislation supports this prohibition.
Main Content
President Donald Trump declared a prohibition on a U.S. Central Bank Digital Currency (CBDC) while promoting stablecoins, as outlined in his 2025 Executive Order in Washington.
This decision significantly impacts the digital asset market, affecting U.S. legislation, international regulations, and future technology investments.
Trump’s Executive Order
The Executive Order issued by President Trump bans the establishment of a Central Bank Digital Currency in the United States. It promotes dollar-backed stablecoins and blockchain financial technology. This decision reverses Biden’s 2022 order exploring a federal CBDC.
President Trump’s Order and bipartisan Congressional support prohibit all investments in a U.S. digital currency. The legislation promotes private stablecoins, like USDC and USDT, and reorganizes regulatory efforts toward existing digital assets.
President Trump’s directive impacts U.S. digital currency financial planning, ending CBDC-related projects. It shifts government focus to stablecoin markets, affecting federal and private investments in digital finance technologies.
The decision alters the landscape for digital financial innovations across the U.S., impacting regulations, international partnerships, and future blockchain solutions while supporting token usage outside central bank control.
It is U.S. policy to support the responsible growth and use of digital assets and promoting legitimate dollar-backed stablecoins worldwide, while explicitly prohibiting the establishment, issuance, and use of a Central Bank Digital Currency (CBDC) in the United States. — Donald J. Trump, President, United States
Market sentiment indicates increased confidence in non-sovereign stablecoins, as this adds clarity. Historical bans on CBDC efforts have strengthened digital asset innovations, leading to stablecoin growth, benefiting USDC and DeFi advancements.
The SEC and CFTC are directed to reform regulations emphasizing stablecoins, affecting digital asset market structures. U.S coalitions may reevaluate their digital strategies with an ongoing shift to new market dynamics.
