President Donald Trump’s executive decree on cryptocurrency seeks to relaunch government regulations that can help make the “American cryptographic capital of the planet”.
Trump – Who campaigned as “president of cryptography” – placed order Thursday evening. He calls for the creation of a cryptocurrency working group to offer new digital asset regulations and examine the creation of a national cryptocurrency stock.
Consequently, cryptocurrencies like Bitcoin will probably become more common and possibly used for payment, as are credit and debit cards.
“This means that cryptocurrency and digital assets are granted by our federal government,” said TODAY AMDAY Lynch, former regulator of the American securities commission and the founder and president of the financial consulting firm, told USA. “Once the regulations are in place and that new decrees are made (if they are not considerably changed by the working group), cryptocurrency transactions in the United States will multiply exponentially.”
The regulations will provide “massive relief for users of daily cryptography,” a professor specializing in financial regulations at Vanderbilt Law School told USA. “What it promises is something that has really missed, which is a feasible, reliable and thoughtful railings, they can provide basic protections to those on the cryptography market.”
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What is President Trump’s executive decree on cryptocurrency
The order establishes a working group on the digital asset markets. They include: The Treasury Secretary (candidate Scott Bessent awaits a full vote from the Chamber on his appointment), the White House AI and Tsar Crypto David Sacks and the president of the Securities and Exchange Commission (Trump has appointed The former commissioner of the SEC Paul Atkins) ,,,, as “the heads of other departments and relevant agencies”.
The group is responsible for developing a regulatory framework for digital assets, depending on the order. This includes stablecoins, a type of cryptocurrency generally fixed to the US dollar.
For those who have invested in cryptocurrencies, the “lack of basic protection” can be “very, very expensive,” Yadav told USA Today. “What has missed … for those who use things like the stablecoins (it is) knowing with certainty that the assets that support these stablecoins are in fact there and that the issuers are good for their statements.”
Also among the tasks of the working group: investigate a digital stock, which could include assets “potentially derived from cryptocurrencies legally seized by the federal government through its law implementation efforts “.
Such a reserve would assimilate cryptocurrencies as basic products, similar to gold, said Lynch. “We have golden stocks, so this order seems to be in accordance with this.”
Crypto enthusiasts differ if the United States should sell its bitcoin – it has nearly $ 20 billion, obtained by legal crises, according to the Crypto Arkham Intelligence tracking company – or even actively buy Bitcoin and store it, A declared Yadav.
“The United States should keep other types of cryptographic assets? This is an open question, but this idea was strongly debated,” she said.
Trump’s order ends with a declaration: “The growth of digital financial technology in America must remain without hindrance by restrictive regulations or unnecessary government interference”.
Executive order to establish leadership of the United States in digital financial technology – The White House | PDF | Executive decree | Cryptocurrency
How Trump came to the crypto
Trump’s decree on the crypto reverses that which the administration of President Joe Bid was issued in 2022. He sought to promote cryptocurrencies and to seek the possible creation of the digital currency of the federal reserve.
The cryptographic industry characterized Biden administration as anti-Crypto and requested the action of congresses and regulators to write new cryptocurrency regulations to clarify when a crypto token is security, a product or is in Another category. For its part, the Biden administration said that its actions taken against exchanges were because they violate the rules concerning titles.
The regulatory framework for the cryptography of the Biden administration “never took place,” said Yadav. In 2022, when the FTX Cryptocurrency Exchange went bankrupt and customers lost at least a billion dollars, “the results of this lack of action were obvious,” she said.
Trump was not initially a supporter of cryptography. During his first mandate in 2019, he posted on X who: “I am not a fan of bitcoin and other cryptocurrencies, which are not money, and whose value is very volatile and based on a thin air. “
But Trump came to Crypto because the Republicans supported his use. And pro-Crypto campaign donations have helped feed Trump’s re-election campaign.
Trump himself entered the cryptography sector, issuing digital negotiation cards, which are digital assets known as non-buttons (NFT). More recently, he and first lady Melania Trump have both published pieces even, which are also digital assets that can be exchanged as cryptocurrency.
“The new coins $ Trump and $ Melania prove that the new president fully supports the use and the show of cryptocurrencies,” said Lynch. “These documents are also another way for the president and his family to monetize the industry in their financial benefit.”
Trump’s executive order on crypto: a “maritime change”
The cryptography industry applauded Thursday’s order, with Nathan McCauley, CEO and co-founder of Crypto Company Anchorage Digital, saying to Reuters: “The today’s executive decree marks a maritime change in the American digital asset policy. “
Others, including large banks, see the order as a step towards ease for consumers to make cryptocurrency transactions.
“If the rules enter and do it a real thing with which you can actually do business, you will find that the banking system will be hard on the transactional side,” said Bank of America, Brian Moynihan, in CNBC in an interview with The annual meeting of the World Economic Forum in Davos, Switzerland.
However, not everyone is optimistic about the crypto. “I am not a defender or a critic … This is not what he was supposed to be, which was an alternative to the bank,” said Anne Walsh, investment director at Guggenheim Partners, whose The headquarters are in New York and Chicago, told Reuters.
“For me, what the crypto is really in correlation is Nasdaq-it is an indicator of risky appetite for me,” she said.
Contribution: Matthew Brown and Bailey Schulz from USA Today; Reuters.
Follow Mike Snider on the wires, Bluesky and X: mikegsnider &@ mikegsnider.bsky.social &@Mikesnider.
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