Jan 23 (Reuters) -

U.S. President Donald Trump on Thursday signed an executive

order creating a cryptocurrency working group tasked with

proposing a new regulatory framework for digital assets, and

exploring the creation of a cryptocurrency stockpile.

The much-anticipated action also ordered that banking

services for crypto companies be protected, and banned the

creation of central bank digital currencies which could compete

with existing cryptocurrencies.

The order sees Trump fulfill a campaign trail pledge to

be a

"crypto president

and promote the adoption of digital assets.

That is in stark contrast to President Joe Biden's

regulators which, in a bid to protect Americans from fraud and

money laundering, cracked down on crypto companies,

suing exchanges

Coinbase, Binance, Kraken and dozens more in federal court,

alleging they were flouting U.S. laws.

The working group will be made up of the Treasury

secretary, attorney general and chairs of the Securities and

Exchange Commission and Commodity Futures Trading Commission,

along with other agency heads. The group is tasked with

developing a regulatory framework for digital assets, including

stablecoins-- a type of cryptocurrency typically pegged to the

U.S. dollar.

The group is also set to "evaluate the potential

creation and maintenance of a national digital asset

stockpile... potentially derived from cryptocurrencies lawfully

seized by the Federal Government through its law enforcement

efforts."

In December, Trump named venture capitalist and former

PayPal executive David Sacks as the crypto and

artificial intelligence czar. He will chair the group, the order

said.

If implemented by the relevant regulators, Trump's

expected policy directives have the potential to push

cryptocurrencies into the mainstream, regulatory and crypto

experts say.

(Reporting by Trevor Hunnicutt and Hannah Lang in Washington)