Sullivan & Cromwell LLP
01/23/2025 | Press release | Distributed by Public on 01/24/2025 11:11
President Donald J. Trump Signs Digital Assets Executive Order; Repeals SAB 121
January 23, 2025
Today President Donald J. Trump signed an Executive Order titled "Strengthening American Leadership in Digital Financial Technology" designed to advance the Administration's goal to "make America the world capital in crypto." The Order revokes certain Biden-era digital asset policies and outlines the Administration's key digital asset policy objectives.
The Order also establishes the President's Working Group on Digital Assets, which will review all "regulations, guidance documents, orders, or other items that affect the digital asset sector" and issue a report to the President proposing a Federal regulatory framework for digital assets.
Also today, the SEC repealed SAB 121 which had presented significant challenges for regulated financial institutions (among others) seeking to provide custody or certain other services involving crypto assets. Today's actions represent a rapid and significant change in the Federal government's approach to digital asset markets and regulation. Many important questions, however, are not resolved by the Order and engagement with Working Group members will be critical in the coming months, particularly given the accelerated timelines set out by the Order.