President Trump Signs Executive Order on Cryptocurrency Regulation and National Asset Stockpile
On Thursday, President Donald Trump signed an executive order addressing the regulation and acquisition of digital assets.
Regulation and Working Group
The order establishes a presidential working group tasked with coordinating the development of clear regulations for the cryptocurrency industry. This group will include the treasury secretary, SEC chair, and other financial regulatory leaders. Within specified timeframes, the group will:
* Identify existing regulations and guidance documents affecting crypto
* Provide recommendations on regulatory and legislative proposals
National Digital Asset Stockpile
The order does not authorize the immediate creation of a national bitcoin stockpile, as previously promised by Trump. Instead, it directs the working group to evaluate the potential creation and maintenance of such a stockpile. The scope of potential crypto assets held in this stockpile may extend beyond bitcoin.
Executive Action and Industry Reactions
President Trump's revokes a previous executive order on crypto by President Joe Biden and reiterates his support for the industry. The executive action has sparked mixed reactions in the crypto market, with some hoping for more definitive measures.
Other Regulatory Developments
In a related move, the Securities and Exchange Commission (SEC) has rescinded accounting guidance (SAB 121) that hindered banks and broker-dealers from holding crypto for clients.
Impact on Government Crypto Holdings
The executive order may allow the US government to stop selling seized cryptocurrency and consider using it to stabilize the economy or pay down national debt. However, further steps calling for direct purchases of crypto may require congressional approval.