Executive order prohibiting central bank digital currency
January 23, 2025
Procedural Bypass
Founders' Principles Violated
Guardrails Violated
Why Level 2?
Executive order prohibiting CBDC bypasses normal regulatory processes and Congressional oversight. Measurable harm to regulatory certainty and Federal Reserve authority. Order created uncertainty in digital asset markets.
What Happened
Context
President Trump signed Executive Order 14178 on January 23, 2025, prohibiting the creation or promotion of a central bank digital currency (CBDC) and revoking previous frameworks on digital assets. The order established a task force for regulation of digital assets.
Action Taken
Signed Executive Order 14178 on January 23, 2025, prohibiting the creation or promotion of a central bank digital currency (CBDC) and revoking previous frameworks on digital assets. The order established a task force for regulation of digital assets. Critics argued the order bypassed normal regulatory processes and Congressional oversight. The order created uncertainty in digital asset markets and raised questions about Federal Reserve authority.
In His Own Words
"A CBDC would be a tool of government control."
"We will not allow a digital dollar."
"Digital currencies must remain private and decentralized."
What's Wrong
Executive order prohibiting CBDC and revoking previous frameworks bypasses normal regulatory processes and Congressional oversight. Digital currency policy typically requires Congressional authorization and regulatory review. The order created uncertainty in digital asset markets and raised questions about Federal Reserve authority.
Impact
Constitutional: Questions about Federal Reserve authority and monetary policy independence. Legal: Order bypasses normal regulatory processes. Economic: Created uncertainty in digital asset markets. Operational: Established task force for regulation, but order bypassed normal processes.