President Donald Trump signed an executive order Thursday prohibiting federal agencies from establishing, issuing or promoting central bank digital currencies.

The executive order also establishes the Presidential Working Group on Digital Asset Markets, which is tasked with developing a comprehensive federal regulatory approach for digital assets, creating guidelines for stablecoins and exploring the potential establishment of a national strategic digital asset reserve. AI and Crypto Czar David Sacks will chair the group, and it will include leaders from the Treasury Department, Securities and Exchange Commission and other relevant agencies.

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"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," the order said. "It is therefore the policy of my administration to support the responsible growth and use of digital assets."

The executive order mandates that all federal agencies and departments submit recommendations to the group regarding the rescission or modification of existing digital asset regulations. It also explicitly repeals the Biden administration's previous executive order framework governing international engagement in the digital assets industry.

The move comes after the president promised to make the United States the "crypto capital of the planet" and likened the digital asset industry to the "steel industry of 100 years ago" at the annual Bitcoin Conference in July.