US President’s Executive Order on Digital Assets and Financial Technology follows Bhutan’s Pioneering Pathway, Set Years Ago!
On January 23, 2025, U.S. President Donald Trump issued an executive order (EO) aimed at promoting American leadership in digital assets and financial technology while safeguarding economic freedom. While experts continue to debate its pros and cons, analysts in Bhutan believe the order highlights Bhutan’s visionary leadership and offers potential benefits on multiple fronts. By prioritizing sustainability, inclusion, and innovation, Bhutan can harness the potential of digital currencies to enhance its economic resilience and well-being. The road ahead requires careful planning and bold vision—qualities that Bhutan, under its visionary leadership, is well-equipped to deliver.
Bhutan’s foray into digital assets began around 2019 and as recent as January 8, 2025, Bhutan announced digital assets such as Bitcoin (BTC), Ether (ETH) and Binance Coin (BNB) will be accepted as part of its strategic reserves, making the Special Administrative Region (SAR) one of the first jurisdictions to do so. “Trumph’s executive order further strengthens the argument that Bhutan, under the leadership of His Majesty the King, made the right decision, firstly in leveraging digital assets and then including digital assets as part of GMC’s strategic asset,” an expert in the field said. Trumph has said “’the digital asset industry plays a crucial role in innovation and economic development in the United States”, as well as the US’ leadership’.” This is what we are doing too, and the US Presidents’ order is another testament of what makes leaders like our King, ‘visionary,” he said.
Going further, he said that in one way or the other the EO strengthens legitimacy for digital assets. “Bhutan is in the top-five list of countries holding Bitcoin reserves. The EO has improved confidence in digital assets and for Bhutan, this could lead to a more favorable environment for exploring the adoption of cryptocurrencies and blockchain-based financial solutions.”
Speaking about another content of the EO, which speaks of “taking measures to protect Americans from the risks of Central Bank Digital Currencies (CBDCs)”, he said it is clear that Trumph does not want or favour CBDCs. Sec. 5 of the EO, “Prohibition of Central Bank Digital Currencies,” says: “Except to the extent required by law, agencies are hereby prohibited from undertaking any action to establish, issue, or promote CBDCs within the jurisdiction of the United States or abroad. Except to the extent required by law, any ongoing plans or initiatives at any agency related to the creation of a CBDC within the jurisdiction of the United States shall be immediately terminated, and no further actions may be taken to develop or implement such plans or initiatives.”
“CBDCs are seen as the government’s way of keeping crypto slow and Bhutan has already gone forward to explore CBDCs through its partnership with Ripple. I would say that concerned agencies should ensure that there is privacy and data security viz-a-viz CBDCs.”
The environmental cost of mining cryptocurrencies, which Trump’s policies have touched indirectly by scrutinizing the technology, is another indication that Bhutan is on the right path. “The world knows that we are using green energy in mining.”
Another expert said that a clear regulatory framework from the U.S. could provide greater stability to global cryptocurrency markets. “As one of the largest economies, U.S. regulations often set a global precedent. This could reduce volatility in crypto markets, making it safer for smaller nations like Bhutan to explore digital currencies and blockchain technologies without fearing sudden market swings.” He added that with clearer regulations, there is likely to be greater technological innovation and development in the crypto space. “Bhutan could further leverage advancements in blockchain technology and digital payment systems from the U.S. to improve its own financial services, particularly in terms of financial inclusion, cross-border payments, and even sustainability initiatives through eco-friendly blockchain solutions.”
“However, there is always two sides of a coin and if the U.S. sets a comprehensive regulatory framework, there could be pressure on Bhutan to quickly implement similar regulations to stay competitive,” he said. He said Bhutan could face challenges in rushing the development of regulatory frameworks that are both effective and aligned with its own priorities, such as Gross National Happiness (GNH) principles and sustainability.
Meanwhile, on Thursday, January 23, 2025, President Trump addressed the World Economic Forum in Davos, Switzerland, pledging that the United States will become “the world capital of artificial intelligence and crypto.”
After the remarks, he signed an executive order “to establish regulatory clarity for digital financial technology and secure America’s position as the world’s leader in the digital asset economy.” In particular, the executive order establishes a Presidential Working Group on Digital Asset Markets tasked with developing a federal regulatory framework governing digital assets. The working group will include the new chair of the Securities and Exchange Commission (SEC) and the heads of other relevant departments and agencies.
The executive order revokes the Biden administration’s digital assets executive order and directs the secretary of the Treasury Department to immediately revoke its Framework for International Engagement on Digital Assets.
The order provides a timeline for action from the Department of Justice, the Treasury Department, the SEC, and other affected agencies with benchmarks within 30, 60, and 180 days of the order’s passage:
- Within 30 days, the agencies shall identify “all regulations, guidance documents, orders, or other items that affect the digital asset sector.”
- Within 60 days, each agency shall submit to the chair recommendations to rescind, modify, or adopt regulations, guidance documents, or orders.
- Within 180 days (July 22), the working group shall submit a report with recommended regulatory and legislative proposals that advance the policies established in the order.
The order gives the working group two main tasks: setting rules for digital assets by creating a national system to regulate digital assets, including stablecoin and managing seized digital assets – considering the idea of a “national digital asset stockpile” made up of digital assets seized by law enforcement.
The first task aligns with current policy goals, but the second is new. Instead of just regulating digital assets, the government may also take part in the market by managing seized cryptocurrencies. The details will become clearer as discussions progress, but public opinion is divided.
The order bans agencies from creating or promoting CBDCs, which are digital currencies issued directly by the central bank. The administration believes CBDCs could harm financial stability, threaten privacy, and weaken U.S. sovereignty.
The working group will have a leader responsible for daily operations. It will hold public hearings and consult industry experts. Businesses and experts should stay updated and provide feedback on proposed policies.
EXCERPTS OF THE EXECUTIVE ORDER་STRENGTHENING AMERICAN LEADERSHIP་IN DIGITAL FINANCIAL TECHNOLOGY EXECUTIVE ORDER
January 23, 2025
By the authority vested in me as President by the Constitution and the laws of the United States of America, and in order to promote United States leadership in digital assets and financial technology while protecting economic liberty, it is hereby ordered as follows:
Section 1. Purpose and Policies. (a) The digital asset industry plays a crucial role in innovation and economic development in the United States, as well as our Nation’s international leadership. It is therefore the policy of my Administration to support the responsible growth and use of digital assets, blockchain technology, and related technologies across all sectors of the economy, including by:
(i) protecting and promoting the ability of individual citizens and private-sector entities alike to access and use for lawful purposes open public blockchain networks without persecution, including the ability to develop and deploy software, to participate in mining and validating, to transact with other persons without unlawful censorship, and to maintain self-custody of digital assets;
(ii) promoting and protecting the sovereignty of the United States dollar, including through actions to promote the development and growth of lawful and legitimate dollar-backed stablecoins worldwide;
(iii) protecting and promoting fair and open access to banking services for all law-abiding individual citizens and private-sector entities alike;
(iv) providing regulatory clarity and certainty built on technology-neutral regulations, frameworks that account for emerging technologies, transparent decision making, and well-defined jurisdictional regulatory boundaries, all of which are essential to supporting a vibrant and inclusive digital economy and innovation in digital assets, permissionless blockchains, and distributed ledger technologies; and
(v) taking measures to protect Americans from the risks of Central Bank Digital Currencies (CBDCs), which threaten the stability of the financial system, individual privacy, and the sovereignty of the United States, including by prohibiting the establishment, issuance, circulation, and use of a CBDC within the jurisdiction of the United States.
Sec. 2. Definitions. (a) For the purpose of this order, the term “digital asset” refers to any digital representation of value that is recorded on a distributed ledger, including cryptocurrencies, digital tokens, and stablecoins.
(b) The term “blockchain” means any technology where data is:
(i) shared across a network to create a public ledger of verified transactions or information among network participants;
(ii) linked using cryptography to maintain the integrity of the public ledger and to execute other functions;
(iii) distributed among network participants in an automated fashion to concurrently update network participants on the state of the public ledger and any other functions; and
(iv) composed of source code that is publicly available.
(c) “Central Bank Digital Currency” means a form of digital money or monetary value, denominated in the national unit of account, that is a direct liability of the central bank.
Sec. 3. Revocation of Executive Order 14067 and Department of the Treasury Framework of July 7, 2022. (a) Executive Order 14067 of March 9, 2022 (Ensuring Responsible Development of Digital Assets) is hereby revoked.
(b) The Secretary of the Treasury is directed to immediately revoke the Department of the Treasury’s “Framework for International Engagement on Digital Assets,” issued on July 7, 2022.
(c) All policies, directives, and guidance issued pursuant to Executive Order 14067 and the Department of the Treasury’s Framework for International Engagement on Digital Assets are hereby rescinded or shall be rescinded by the Secretary of the Treasury, as appropriate, to the extent they are inconsistent with the provisions of this order.
(d) The Secretary of the Treasury shall take all appropriate measures to ensure compliance with the policies set forth in this order.
(b) Within 30 days of the date of this order, the Department of the Treasury, the Department of Justice, the Securities and Exchange Commission, and other relevant agencies, the heads of which are included in the Working Group, shall identify all regulations, guidance documents, orders, or other items that affect the digital asset sector. Within 60 days of the date of this order, each agency shall submit to the Chair recommendations with respect to whether each identified regulation, guidance document, order, or other item should be rescinded or modified, or, for items other than regulations, adopted in a regulation.
(c) Within 180 days of the date of this order, the Working Group shall submit a report to the President, through the APEP, which shall recommend regulatory and legislative proposals that advance the policies established in this order. In particular, the report shall focus on the following:
(i) The Working Group shall propose a Federal regulatory framework governing the issuance and operation of digital assets, including stablecoins, in the United States. The Working Group’s report shall consider provisions for market structure, oversight, consumer protection, and risk management.
(ii) The Working Group shall evaluate the potential creation and maintenance of a national digital asset stockpile and propose criteria for establishing such a stockpile, potentially derived from cryptocurrencies lawfully seized by the Federal Government through its law enforcement efforts.
(d) The Chair shall designate an Executive Director of the Working Group, who shall be responsible for coordinating its day-to-day functions. On issues affecting the national security, the Working Group shall consult with the National Security Council.
(e) As appropriate and consistent with law, the Working Group shall hold public hearings and receive individual expertise from leaders in digital assets and digital markets.
Sec. 5. Prohibition of Central Bank Digital Currencies.
(a) Except to the extent required by law, agencies are hereby prohibited from undertaking any action to establish, issue, or promote CBDCs within the jurisdiction of the United States or abroad.
(b) Except to the extent required by law, any ongoing plans or initiatives at any agency related to the creation of a CBDC within the jurisdiction of the United States shall be immediately terminated, and no further actions may be taken to develop or implement such plans or initiatives.
Sec. 6. Severability. (a) If any provision of this order, or the application of any provision to any person or circumstance, is held to be invalid, the remainder of this order and the application of its provisions to any other persons or circumstances shall not be affected thereby.
Sec. 7. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department, agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
THE WHITE HOUSE, January 23, 2025.
Ugyen Tenzin from Thimphu