Trump Executive Action on Cryptocurrency
President Donald Trump has issued an executive order addressing two key promises made to the cryptocurrency industry.
Regulatory Framework and Digital Asset Stockpile
The order establishes a presidential working group to create a comprehensive regulatory framework for digital assets. The group will evaluate the potential creation and maintenance of a national digital asset stockpile, potentially including cryptocurrencies seized by the government.
Revocation of Biden Order and Pro-Crypto Stance
Trump revoked a previous executive order issued by President Biden that called for a study on crypto assets. He reiterated his support for the industry, aiming to make the US a "crypto capital."
Working Group and Regulatory Proposals
The working group will identify existing crypto regulations and make recommendations within 60 days. Within 180 days, it will submit a report to the president with regulatory and legislative proposals.
Other Regulatory Developments
The Securities and Exchange Commission has rescinded a guidance that hindered banks from holding crypto for clients. Industry advocates believe that Trump can order the government to hold bitcoin as a reserve, which could potentially stabilize the economy and reduce debt. However, additional steps involving government purchases of crypto may require congressional approval.