Trump Signs Executive Order on Cryptocurrencies
President Donald Trump has signed an executive order that establishes a presidential working group to coordinate clear regulation for the digital assets industry.
Key Points:
* Prohibits the creation of central bank digital currencies (CBDCs).
* Directs the working group to evaluate the creation of a national digital asset stockpile, including seized cryptocurrencies.
* Revokes President Biden's executive order calling for a study of crypto assets.
* Creates a federal regulatory framework for crypto markets, chaired by David Sacks.
Market Reaction:
* Bitcoin (BTC) rose slightly after the signing but later fell.
* Industry experts note that the order's content was largely anticipated but view Trump's pro-crypto stance as beneficial for the sector.
Regulatory Developments:
* The Securities and Exchange Commission (SEC) rescinded accounting guidance hindering banks from holding crypto for clients.
Future Considerations:
* The working group will submit proposals for regulatory and legislative action within 180 days.
* Trump may order the US government to hold seized cryptocurrencies as a reserve.
* Further steps to purchase crypto require congressional approval.
Expert Commentary:
"The administration is making a significant first step toward clear, consistent rules of the road," said Anchorage Digital CEO Nathan McCauley.
"Any government who holds gold should also hold bitcoin as a reserve," said Coinbase Global CEO Brian Armstrong.