President Donald Trump signed an executive action on Thursday that fulfills two promises to the cryptocurrency world.
The order created a presidential group to coordinate the establishment of clear regulation of the digital asset industry and prohibited the creation of central bank digital currencies (CBDCs).
What it did not approve of was the immediate creation of a “strategic national Bitcoin stockpile,” as Trump also promised during the 2024 campaign.
Instead, it directs a new working group to evaluate “the potential creation and maintenance of a national digital asset stockpile,” and states that “the “Efforts to propose standards for establishing such stockpiles.” ”
This could expand the scope of what governments may hold in this stockpile beyond just Bitcoin.
Trump also rescinded a March 2022 executive order from President Joe Biden that called for a multi-agency investigation into crypto assets and ordered all agencies to take “strong steps to reduce the risks posed by digital assets.” He encouraged them to take the necessary steps.
Bitcoin (BTC) rose a bit after Trump signed the executive action and then fell. It was slightly higher in the last 24 hours after hitting fresh highs on Monday ahead of Trump’s inauguration.
According to Sean Farrell, Head of Digital Assets at FundStrat, some in the Crypto Market may have expected more.
“I think what was issued today was priced,” Farrell told Yahoo Finance.
Still, he added that the president’s pro-crypto stance is “huge” for the future of the industry.
Last year, Trump pledged to make the United States the “crypto capital of the planet.” Last Friday, Trump’s team launched an official meme coin for the incoming 47th president (Trump) and one for first lady Melania Trump (Melania) on the Solana (SOL) blockchain. I launched it. They began trading on Sunday.
On Thursday, he reiterated his support for the industry in a virtual speech at the World Economic Forum, saying he plans to make the United States the “world capital of artificial intelligence and cryptography.”
The Presidential Working Group will work on developing a federal regulatory framework for the crypto market. The group is chaired by the White House AI and Crypto Czar David Sacks and includes the Secretary of the Treasury, the SEC Chairman, and various other financial regulators.
That working group will include the identification of all regulations, guidance documents, and orders affecting cryptography by various government agencies within 30 days and recommendations for each item within 60 days. .
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