Executive Action on Cryptocurrency Regulation and Digital Asset Stockpile
Presidential Actions
President Donald Trump issued an executive action establishing a presidential working group to develop clear regulations for the digital asset industry and prohibit the creation of central bank digital currencies (CBDCs).
National Digital Asset Stockpile
The action directs the working group to evaluate the creation and maintenance of a national digital asset stockpile. The stockpile could potentially include cryptocurrencies seized by the Federal Government.
Regulatory Framework
The working group will develop a federal regulatory framework for crypto markets, identifying existing regulations and providing recommendations within 30 and 60 days respectively. A report with legislative proposals will be submitted within 180 days.
Industry Reaction
While some in the crypto market anticipated more, the industry welcomed the President's pro-crypto stance. Coinbase CEO Brian Armstrong suggested the creation of a strategic bitcoin reserve, while Yahoo Finance analyst David Hollerith noted the potential for government seizure of cryptocurrencies to stabilize the economy and strengthen the dollar.
Working Group Composition
The working group will be chaired by White House AI and crypto czar David Sacks and include representatives from the Treasury Department, SEC, and other financial regulatory agencies.