The new president of the United States signed an executive order in the last few hours to reactivate cryptocurrency markets in the country. What are the main political actions included in it?
Key policy actions include protecting and promoting citizens’ ability to use digital assets and develop the underlying blockchain technology without persecution, protecting the sovereignty of the U.S. dollar by supporting the growth of dollar-backed stablecoins around the world, andProtecting citizens from the dangers of a central bank digital currency (CBDC).
The executive order countered what the industry viewed as an attack on its ability to conduct business in the U.S. by the previous administration as a result of “Operation Chokepoint 2.0” (OCP 2.0). This concept was largely brought to light by cryptocurrency entrepreneur Nic Carter, founding partner of Castle Island Ventures, who argued that There was a deliberate attempt by US regulators to «de-bank» peopleand entities that work with cryptocurrencies and prevent banks from offering cryptocurrency services.
Trump also called for the creation of a “President’s Task Force on Digital Asset Markets” to assess regulations across U.S. agencies that impact the digital asset industry. David Sacks, previously appointed as the White House’s artificial intelligence and cryptocurrency czar, has been tapped to chair the task force, which is embedded within the National Economic Council. This task force will aim to:Establish clear and transparent regulations for digital assets, with particular attention to the Department of the Treasury, the Department of Justice, and the Securities and Exchange Commission.
The task force would also look into the potential creation and maintenance of a “national reserve of digital assets.” This concept would involve potentially creating such a reserve from cryptocurrencies legally 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 Sen. Cynthia Lummis (R-Wyo.) has proposed in her BITCOIN Act. However, reports that Trump might want to consider a mix of “made in the U.S.A.” cryptocurrencies could have led to a decision to delegate this effort to the task force.
While not considered a “day one” executive order of the administration, the fact that Trump is being given priority to sign it in his first week in office sends a strong signal that Elevates cryptocurrency policy to national importanceand creates a path for digital assets to flourish and grow in the US.
