Trump Signs Executive Orders on AI and Cryptocurrency in the US
On January 23, 2025, U.S. President Donald Trump signed a pair of sweeping executive orders targeting artificial intelligence (AI) and cryptocurrency. These directives, aimed at consolidating America’s position in both domains and sparking global discussions about their implications for the broader digital economy.
The executive order on AI introduces a 180-day timeline for developing a comprehensive plan to enhance AI's role in economic growth, security, and technological leadership. It tasks key agencies with identifying existing regulations that may hinder AI innovation and providing recommendations for revisions or removals. By prioritising the removal of bureaucratic hurdles, this move signals a focus on accelerating AI adoption.
This order also revokes a 2023 directive requiring stringent safety testing for high-risk AI systems. While advocates of the change argue it removes barriers, it has raised questions globally about the trade-off between rapid development and ethical safeguards. Countries with established AI policies, such as those in the EU under its AI Act, may find these developments significant as they navigate their own balance between regulation and innovation.
Digital Assets Framework
Trump's cryptocurrency directive lays the groundwork for a regulatory framework for digital assets, including stablecoins, and evaluates the potential creation of a strategic national digital asset stockpile. This stockpile could include cryptocurrencies lawfully seized by the government, marking a novel approach to managing digital assets.
Notably, the order bans the development of a central bank digital currency (CBDC) in the United States, citing risks to financial stability and individual privacy. This contrasts sharply with the European Union's comprehensive MiCA regulation, which recently came into force, and China's continued development of its digital yuan. Trump's directive also pledges to protect banking services for cryptocurrency firms, a marked departure from the enforcement-heavy approach of prior administrations.
Global Comparisons And What's Next?
These orders underscore a growing divergence in how nations approach AI and digital assets. While the United States focuses on fostering decentralised innovation and reducing regulatory friction, regions like the EU emphasise comprehensive oversight with frameworks such as MiCA for crypto-assets and the AI Act.
However, this divergence opens opportunities for cross-border dialogue. The United States' focus on decentralised systems could complement the EU's structured approaches, paving the way for shared standards and frameworks while maintaining ethical practices. Nations exploring their own policies may find inspiration or lessons in these contrasting strategies.
The establishment of a new presidential working group on digital assets, chaired by David Sacks in his dual role as AI and crypto 'czar,' further highlights the U.S. administration's commitment to consolidating leadership in these sectors. This group is tasked with reporting within 180 days on potential legislative and regulatory proposals, shaping the trajectory for AI and cryptocurrency policy.
For global stakeholders, these developments reflect the accelerating pace of technological and regulatory change. As countries adapt their strategies to align with emerging global norms, collaboration and shared learning will be crucial to ensuring that AI and digital assets achieve their potential in driving economic growth and societal benefits.
