There's been a significant shift in the US government's policy on Bitcoin. President Trump has signed an executive order that embraces Bitcoin and open blockchain technologies, while banning Central Bank Digital Currencies (CBDCs) ¹. This move marks a major turning point for Bitcoin, as the US government is now explicitly supporting the responsible growth and use of digital assets.
The executive order establishes a Strategic Bitcoin Reserve, which will hold Bitcoin seized by law enforcement agencies. This reserve is expected to remove $17 billion in potential sell-side pressure from the market ². Additionally, the order creates a United States Digital Asset Stockpile to manage other digital assets held by the government.
The policy shift also includes several key provisions:
- *Protection of blockchain networks*: The order ensures that open, permissionless blockchain networks like Bitcoin are protected from censorship.
- *Right to self-custody*: Individuals have the right to develop software, maintain self-custody of digital assets, and participate in mining or transaction validation.
- *Prohibition of CBDCs*: The creation, issuance, and promotion of Central Bank Digital Currencies are strictly prohibited.
- *Regulatory clarity*: The order calls for technology-neutral regulations and clearer guidelines for agencies like the SEC and CFTC.
Overall, this policy shift is a significant win for Bitcoin and the broader crypto community, as it provides a clearer framework for innovation and growth ¹.
