Key Insights
- US President Donald Trump has just established a “working group” via Executive order, tasked with overhauling the country’s approach to digital assets.
- This order is aimed at banning the creation of a CBDC (a Central Bank Digital Currency) within the country.
- The working group created by the president is tasked with providing banking services for crypto companies.
- Donald Trump has tapped former PayPal exec, David Sacks to lead this initiative as the crypto and artificial intelligence czar.
The US President Donald Trump has just introduced an exciting shift in the country’s financial policy, with the establishment of a new crypto working group by executive order.
This “working group” will be a team of experts from various US sectors, tasked with overhauling the country’s approach to digital assets.
Let’s see how this move might help to establish the United States as a global leader in crypto innovation.
A Shift Away from Central Bank Digital Currencies
This executive order that Donald Trump signed is aimed at prioritizing support for existing cryptocurrencies.
More than this, it is also aimed at banning the creation of a CBDC (a Central Bank Digital Currency) within the country.
Critics of the original CBDC initiative have argued that the launch of these regulated cryptos could stifle private sector innovation.
They have also argued that it could create undue competition with already existing digital assets.
Judging by the timing of these initiatives, it is clear that the Trump administration is taking an early stance with the crypto industry:
A beacon of decentralization over centralized control.
Ensuring Banking Access for Crypto Firms
Another aspect of this executive order that the working group is tasked with accomplishing, is the provision of banking services for crypto companies.
This comes amid claims from the industry that regulators under the previous administration had pressured banks to sever ties with crypto firms.
The new directive from Trump is aimed at countering such claims and embracing a more inclusive approach for crypto businesses to thrive.
Donald Trump has also taken significant steps to align the Securities and Exchange Commission (SEC) with the administration’s vision.
Following the resignation of former chair Gary Gensler, Donald Trump has tapped pro-crypto candidate Paul Atkins to lead the agency.
The SEC has also repealed accounting guidelines It held in the past, that imposed heavy fees on publicly listed companies that safeguard third-party crypto assets—Coinbase for example.
A National Digital Asset Stockpile
The working group’s agenda will also include the creation of a national crypto stockpile, if feasible.
This stockpile could consist of digital assets that were lawfully seized by federal authorities in crime raids.
While this move has been praised for being innovative, it does raise questions about implementation.
Some experts have suggested that the US treasury use its Exchange Stabilization Fund as a mechanism for holding cryptocurrencies like Bitcoin.
However, despite this solution, the proposal still needs Congressional approval, which may or may not come.
Donald Trump has also tapped former PayPal exec, David Sacks to lead this initiative as the crypto and artificial intelligence czar.
Sacks is expected to chair the newly formed group, which includes other prominent figures like the Treasury Secretary, as well as the chairs from the SEC and Commodity Futures Trading Commission (CFTC).
The announcement of this initiative has caused a sea of green to appear across the crypto market, with Bitcoin hitting a high of $106,300 on Friday this week.
Although the prices have dropped slightly since then, investors have remained optimistic for a break above the $109,071 weekly high.
