Donald Trump Stays True To Crypto Promises, Orders Creation Of Dedicated Cryptocurrency Working Group

Trump's actions contrast sharply with those of former President Joe Biden’s administration, which had taken a more adversarial stance on crypto.

US President Donald Trump signed an executive order on Thursday establishing a dedicated cryptocurrency working group. The initiative aims to craft new regulations for digital assets and assess the feasibility of creating a national cryptocurrency reserve. This fulfils Trump's campaign pledge to modernise US crypto policies and promote blockchain innovation.

What Does The Trump Order State?

The order includes significant directives to protect banking services for crypto businesses, addressing concerns from industry insiders about alleged banking restrictions. Regulators have denied claims that banks were pressured to sever ties with crypto companies.

Additionally, the order explicitly bans the development of central bank digital currencies (CBDCs) in the US, positioning the country against such alternatives that could compete with existing cryptocurrencies.

In a related development, the Securities and Exchange Commission (SEC) announced the withdrawal of prior accounting guidelines that made crypto custody services prohibitively expensive for some public companies. This change is expected to encourage broader adoption of digital assets.

Trump Vs Biden: Who's More Pro-Crypto?

Trump's actions contrast sharply with those of former President Joe Biden’s administration, which had taken a more adversarial stance on crypto, pursuing legal action against major exchanges like Coinbase and Binance. As reported by Reuters, the new executive order has been welcomed by industry leaders, who view it as a much-needed step toward regulatory clarity and market growth.

If implemented effectively, the order could bring cryptocurrencies further into the mainstream, experts say. The move aligns with the SEC's recent announcement of a task force to revamp crypto regulations, signalling the administration's commitment to fostering innovation in the digital asset space.

Bitcoin has reacted to the crypto-friendly developments, briefly hitting a record high of $109,071 earlier this week before settling around $104,000 on Thursday afternoon.

The working group, which includes key officials such as the Treasury Secretary and heads of the SEC and Commodity Futures Trading Commission (CFTC), will focus on creating a comprehensive regulatory framework for digital assets, including stablecoins. The team will also explore the creation of a national digital asset stockpile, potentially sourced from cryptocurrencies seized in federal enforcement actions.

Details on how this reserve would be implemented remain unclear, with legal experts debating whether congressional approval is required. Some speculate that the reserve could leverage the US Treasury’s Exchange Stabilization Fund, which is traditionally used for managing foreign currencies.

Adding to the administration's crypto focus, Trump recently appointed David Sacks, a venture capitalist and former PayPal executive, as the new czar for cryptocurrency and artificial intelligence. Sacks will chair the newly formed working group, further signalling the administration’s commitment to advancing the sector.

This decisive shift in US crypto policy is expected to drive innovation and reinforce the country's leadership in the global digital economy.

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