U.S. President Donald Trump has come through with an eagerly awaited executive order on crypto that directs his administration to establish friendly policies to put the industry on solid U.S. footing and looking into establishing a “digital asset stockpile.”
After years of courtroom combat with federal authorities, Trump’s order issued on Thursday could allow the digital assets sector to move forward in the U.S. with a more welcoming framework set by the White House. Such orders are more of a beginning than an end in federal policy, but the pro-crypto president has taken that first step.
Bitcoin surged briefly above $106,000 from around $103,000 in the minutes following the news before retracing most of the gains. Recently, BTC changed hands at $103,500, down 0.51% over the past 24 hours.
Thursday’s order said it would protect Americans from persecution if they developed software, were miners or validators or otherwise transacted “for lawful purposes.”
The order created a working group, chaired by Trump’s czar for crypto and AI (venture capitalist David Sacks) and composed of various Cabinet officials, the heads of the Securities and Exchange Commission and Commodity Futures Trading Commission and other White House officials. Though the order does not itself establish a strategic bitcoin reserve, it does direct the working group to “evaluate the potential creation and maintenance of a national digital asset stockpile.”
Trump’s order also bans work on a U.S. central bank digital currency in his administration, saying that the agencies under his authority are “prohibited from undertaking any action to establish, issue, or promote CBDCs within the jurisdiction of the United States or abroad.”
When Trump had failed to issue the document among his opening flurry of executive orders, crypto insiders grew increasingly tense about the new relationship he’s promised. But behind the scenes, leaders at the U.S. markets regulators — the Securities and Exchange Commission and Commodity Futures Trading Commission — were already prepping this week to move digital assets businesses out of the multi-year penalty box the previous agency officials kept them in.
UPDATE (Jan. 23, 2024, 20:58 UTC): Adds additional detail.
President Donald Trump issued a landmark executive order today, paving the way for the regulation and growth of digital assets in the United States. The executive order, titled “Promoting Responsible Innovation in Digital Assets,” aims to establish a clear regulatory framework for cryptocurrencies and other digital assets, while also encouraging innovation in the space.
This move comes as the popularity of cryptocurrencies continues to rise, with more and more investors and businesses looking to get involved in the digital asset space. By providing clarity and guidance on how these assets will be regulated, the executive order aims to create a more stable and secure environment for digital asset investors and businesses.
In a statement, President Trump emphasized the importance of embracing new technologies and ensuring that the United States remains at the forefront of innovation. He stated, “We must embrace the opportunities that digital assets present, while also ensuring that they are used responsibly and in compliance with existing laws and regulations.”
The executive order outlines a number of key initiatives, including the establishment of a task force to coordinate regulatory efforts, the development of a national strategy for digital assets, and the creation of a framework for overseeing and regulating digital asset exchanges.
Overall, this executive order represents a major step forward in the regulation and growth of digital assets in the United States. By providing a clear regulatory framework and encouraging responsible innovation, the Trump administration is positioning the U.S. to be a leader in the digital asset space for years to come.
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