Executive Action on Digital Assets: President Trump's Supportive Stance
On Thursday, President Donald Trump issued an executive order establishing a working group to advise the White House on crypto policy. This action represents a significant step forward for the digital asset industry, signaling the President's support for its growth and innovation.
The working group, which includes key agencies such as the Treasury and Justice Departments, SEC, and CFTC, is tasked with developing a regulatory framework and legislative proposals within six months. Among its recommendations will be the evaluation of a crypto stockpile.
The order emphasizes the role of regulated, dollar-backed stablecoins in supporting the responsible growth of digital assets, while prohibiting central bank digital currencies (CBDCs) due to their potential risks to the financial system, privacy, and US sovereignty.
Industry experts believe this executive order will have a major positive impact on the sector. Matt Hougan, CIO of Bitwise Asset Management, states that it "establishes crypto as a national priority and lays an aggressive timeline for new regulation and a strategic reserve."
President Trump's decision to support digital assets fulfills several of his campaign promises, including streamlining regulations, appointing crypto-friendly officials, and establishing a Bitcoin stockpile. The pardon of Ross Ulbricht, founder of Silk Road, further demonstrates the President's willingness to engage with the crypto community.
The order also repealed Staff Accounting Bulletin No. 121, which had been seen as a barrier to banks offering custody services for digital assets. This repeal has been welcomed by the industry.
Despite the market's positive response, some experts believe that the full impact of Trump's actions may not be realized immediately. Edward Chin, co-founder of Parataxis Capital, predicts that "the real legislation will be forthcoming."
Trump's previous skepticism about digital assets has given way to a more positive stance, influenced in part by the industry's increased political involvement. His endorsement of memecoins, nonfungible tokens, and World Liberty Financial further highlights his evolving views.
Since Trump's election victory, Bitcoin has surged over 50%. The industry is optimistic that the President's supportive action will continue to drive growth and foster innovation in the digital asset sector.