President Trump issued an executive order on digital assets today making crypto a national priority.
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Today, President Donald Trump signed a new executive order titled “Strengthening American Leadership in Digital Financial Technology” that supports the growth of the digital asset industry in the U.S. As the crypto industry became one of the largest donors to his Presidential campaign after feeling beleaguered and attacked by regulations under the Biden Administration, today’s executive order is proof Trump is following through on a statement made during the campaign to make America the “crypto capital of the planet.”
Key policy actions included protecting and promoting citizens’ ability to use digital assets and develop the underlying blockchain technology without persecution, protecting the sovereignity of the U.S. dollar by supporting the growth of dollar-backed stablecoins worldwide, and protecting citizens from the dangers of a central bank digital currency (CBDC).
The executive order pushed back on what the industry saw as an attack on their ability to conduct business in the U.S. by the prior Administration as a result of “Operation Chokepoint 2.0” (OCP 2.0). This concept was largely brought to light by crypto entrepreneur Nic Carter, Founding Partner at Castle Island Ventures, who maintained there was a deliberate attempt by U.S. regulators to “debank” individuals and entities working in cryptocurrency and to prevent banks from offering crypto services.
Trump also called for the establishment of the “President’s Working Group on Digital Asset Markets” to evaluate regulations in U.S. agencies that impact the digital asset industry. Previously named as the White House A.I. and crypto czar, David Sacks has been designated to chair the working group, which is embedded within the National Economic Council. This working group will aim to establish clear and transparent regulations for digital assets, with a particular focus on the Department of the Treasury, the Department of Justice, and the Securities and Exchange Commission.
The working group would also study the potential creation and maintenance of a ‘national digital asset stockpile’. This concept would be to potentially create such a stockpile from cryptocurrencies lawfully seized by the U.S. Government through law enforcement efforts. Prior to this, there was the much-discussed possibility of an executive order creating a ‘Strategic Bitcoin Reserve’ similar to what Senator Cynthia Lummis (R-Wyo.) has proposed in her BITCOIN Act. However, reports that Trump may want to consider a mix of cryptocurrencies “made in the U.S.” might have resulted in a decision to delegate this effort to the working group.
While not seeing this as an exeuctive order on “Day One” of the Administration, being prioritized to having Trump sign this in his first week in office sends out a strong signal that elevates crypto policy to national importance and creates a pathway for digital assets to flourish and grow in the U.S.