President Donald Trump has signed a new executive action on cryptocurrency, aiming for clear rules while exploring a potential national digital asset stockpile.
Key Facts:
- Signed on Thursday, the action establishes a presidential working group on crypto and halts the immediate creation of a strategic bitcoin reserve.
- The order prohibits the development of central bank digital currencies (CBDCs).
- It revokes a March 2022 executive order from President Joe Biden that sought to reduce crypto-related risks.
- The new working group will evaluate forming a national digital asset stockpile and review current regulations within 30 days.
- Major crypto figures like Brian Armstrong, CEO of Coinbase, have urged the government to hold bitcoin, similar to gold reserves.
The Rest of The Story:
This executive action represents President Trump’s effort to fulfill promises made to cryptocurrency advocates.
While it does not initiate a strategic bitcoin stockpile right away, it opens the door for a broader digital asset reserve that could include various cryptocurrencies seized by federal authorities.
The presidential working group, led by White House AI and crypto czar David Sacks, has 180 days to recommend regulatory and legislative proposals.
Some in the crypto space were expecting quicker action.
Sean Farrell of Fundstrat told Yahoo Finance, “What was issued today, I guess, was priced in,” noting that the market’s reaction was mild.
Even so, many see Trump’s move as a positive signal.
Bitcoin remained near record highs after an initial uptick and brief dip.
Industry supporters are already voicing optimism.
Anchorage Digital CEO Nathan McCauley said, “By taking a whole-of-government approach to crypto, the administration is making a significant first step toward writing clear, consistent rules of the road.”
He added, “We look forward to engaging with the president’s working group as Washington works to get it right on crypto.”
While the National Digital Asset Stockpile, and potential creation of a Strategic Bitcoin Reserve, is extremely bullish
This new crypto executive order from Trump is arguably just as, if not more, bullish for the crypto industry
The EO reflects the polices of the Trump admin… pic.twitter.com/wjbNE7ki3R
— Zach Rynes | CLG (@ChainLinkGod) January 23, 2025
Commentary:
We welcome President Trump’s approach, as it provides a balanced framework for crypto oversight.
Digital assets have evolved into a major financial force, and it is wise for the government to establish transparent rules to protect investors and encourage innovation.
Introducing sensible regulation can offer clarity for businesses and individuals who want to engage in crypto.
With Trump’s clear support, there is a strong chance these guidelines will become more streamlined, helping the United States maintain leadership in financial technology.
The Bottom Line:
Trump’s executive action sets the stage for a coordinated federal approach to crypto.
If done well, it could bring stability, promote growth, and put the United States at the forefront of the digital asset revolution.
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