President Trump Executes Decree to Bolster Cryptocurrency Sector Markets
In a significant move, President Trump signed an executive order titled "Strengthening American Leadership in Digital Financial Technology" on a recent Thursday. This order, designed to bolster the digital asset industry within the US, comes after the crypto sector emerged as a major donor to Trump's campaign, following regulatory challenges under the Biden administration.
The order emphasizes three key policy objectives:
- Protecting Citizen's Digital Asset Rights: This aim protects citizens' ability to use digital assets and develop blockchain technology without fear of persecution. If citizens' rights are violated, the order encourages legal remedies.
- Supporting Dollar-Backed Stablecoins: The order advocates for the growth of dollar-backed stablecoins globally, securing the US dollar's sovereignty.
- Shielding Citizens from Central Bank Digital Currencies (CBDCs): The executive order discourages the establishment and utilization of CBDCs in the US due to potential risks to financial stability, privacy, and sovereignty.
Responding to industry concerns, the order countered a perceived attack on the crypto sector by prior administrations. The concept of "Operation Chokepoint 2.0" was a subject of concern, where U.S. regulators allegedly attempted to debank entities and individuals involved in cryptocurrency, hindering crypto services.
To address these issues, Trump established "The President's Working Group on Digital Asset Markets." This group, overseen by David Sacks, intends to propose clear and transparent regulations for digital assets. The working group is stationed at the National Economic Council and will primarily focus on the Treasury Department, Justice Department, and the Securities and Exchange Commission.
As for potential national digital asset stockpiles, the working group will explore the feasibility of creating such a reserve using cryptocurrencies seized lawfully by U.S. law enforcement. Prior to this, a prominent idea involved creating a "strategic bitcoin reserve" like what Senator Cynthia Lummis (R-Wyo.) suggested in her Bitcoin Act.
Finally, the executive order marks a significant turning point for crypto policy in the US, elevating its importance and serving as a stepping stone for digital assets' growth in the country.
The executive order also mentions the crypto sector's support during Trump's campaign, making digital assets a notable topic in his presidential fundraising efforts. Moreover, the order encourages the exploration of using Bitcoin and other digital assets as part of a potential national digital asset stockpile, echoing Senator Lummis' Bitcoin Act proposal.
