President Donald Trump on Thursday proposed federal regulations for “digital assets,” including virtual currencies, digital tokens and stablecoins, and ordered the creation of a task force to assess the nation's crypto stockpiles.
The task force will be led by David Sachs, former PayPal chief operating officer and founder of VC firm Craft Ventures, whom President Trump named the “emperor” of cryptocurrencies and AI. The group also includes the Treasury Secretary, Attorney General, Secretary of Commerce, and other government officials.
President Trump’s latest executive order, titled “Strengthening U.S. Leadership in Digital Financial Technology,” comes as the Securities and Exchange Commission, currently led by crypto-friendly Republican Mark Ueda, has “clarified the The order was issued two days after the virtual currency special committee was set up to draw appropriate regulatory lines. market. Mr. Ueda will also be a member of the Presidential Working Group.
Former SEC Chairman Gary Gensler had made a name for himself within the crypto community by pursuing stronger regulation of cryptocurrencies.
President Trump's order also protects the rights of individuals to access, use, develop, and transact on public blockchains. This will officially protect blockchain activities as legal.
Signed Thursday, the executive branch repeals Biden-era rules regarding virtual currencies and digital assets. Specifically, it was signed in 2022 to address the risks and exploit the potential benefits of digital assets and their underlying blockchain technology, while emphasizing the need to protect consumers and investors. Repeals former President Joe Biden's executive order. President Trump's order would also repeal the framework issued by the Treasury Department in 2022 for international engagement in virtual currency and blockchain development.
While Biden-era policies focused on risk mitigation and international cooperation, President Trump's executive orders prioritize economic freedom and U.S. sovereignty.
Another major difference is that Biden's executive order directs various federal agencies to consider developing a U.S. central bank digital currency (CBDC). President Trump's order bans CBDCs, meaning governments cannot create digital versions of the dollar that are directly controlled by central banks. At the same time, the order promotes privately issued USD-backed stablecoins with the aim of strengthening the dollar's dominance in global trade and digital finance.
In other words, Trump is demonstrating his determination to keep cryptocurrencies under a decentralized financial system.
It is worth noting that President Trump launched the meme coin $TRUMP just days before his inauguration. Memecoin was valued at $6.84 billion as of Thursday afternoon. Critics have warned that Trump's tokens are eroding the boundaries between the president's political and business interests, and have the makings of a classic pump-and-dump scheme. Some people claim that.
Previous administrations have approached the world of cryptocurrencies cautiously due to concerns that cryptocurrencies could easily be used in connection with illegal activities such as ransomware payments and money laundering. . One of the most prescient examples of the dangers of cryptocurrencies was the collapse of cryptocurrency trading platform FTX, which revealed massive fraud, misappropriation of customer funds, and lack of regulatory oversight.
Many in the crypto industry argue that the FTX crash is why clearer regulations designed for the industry are needed. There are also some companies, like Chaineries, that have made strides in building trust in cryptocurrencies by providing compliance and investigation software to track cryptocurrencies.