On January 23, former U.S. President Donald Trump signed an executive order establishing a cryptocurrency working group, marking a significant step toward fulfilling his campaign promise to be a “crypto president.”
This initiative aims to create a comprehensive federal framework for cryptocurrency regulation and lays the groundwork for a potential “Bitcoin reserve,” according to a report by Fox News.
Objectives of the Cryptocurrency Working Group
The newly formed advisory group will focus on three key areas:
- Policy Development: Crafting forward-thinking digital asset policies.
- Legislative Collaboration: Working closely with Congress to design crypto-friendly legislation.
- Agency Coordination: Streamlining efforts between major regulatory bodies, including the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Treasury Department.
A cornerstone of this initiative is the exploration of a Bitcoin reserve, referred to in the executive order as a “digital asset stockpile.”
Context and Background
This executive order follows Trump’s vocal support for the digital asset sector during his presidential campaign. Throughout his campaign, he pledged to foster a favorable environment for cryptocurrency innovation in the U.S., positioning the nation as a global leader in digital financial technology.
Key Provisions of the Executive Order
The Presidential Working Group will:
- Develop a federal regulatory framework for digital assets, including stablecoins.
- Assess the feasibility of creating a strategic national digital asset reserve.
The group will be chaired by the White House’s AI and cryptocurrency czar, with participation from key officials such as the Treasury Secretary and the SEC Chair.
Notably, the executive order explicitly bans federal agencies from promoting or implementing central bank digital currencies (CBDCs), reversing the policy direction of the Biden administration.
White House Statement
In an accompanying statement, the White House emphasized Trump’s commitment to making the United States a global hub for digital financial innovation. “President Trump will help make the United States the center of digital financial technology by halting aggressive enforcement actions and regulatory overreach that have stifled crypto innovation under previous administrations,” the statement said.
Final Word
This executive order underscores a bold approach to cryptocurrency regulation, signaling a potential shift in the U.S. government’s stance on digital assets. With the establishment of the cryptocurrency working group and the exploration of a Bitcoin reserve, the Trump administration seeks to position the U.S. as a leader in the rapidly evolving digital asset ecosystem.
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