President Donald Trump ordered the creation of a work group on Thursday to propose federal regulations for “digital assets” – including cryptocurrencies, digital brands and stablecoins – and evaluating a national cryptographic stock.
EX-PAYPAL COO and founder of VC Firm Craft Ventures David Sacks, Trump’s choice for Crypto AI “Czar” will lead the working group. The team will also include the Minister of Finance, the Attorney General, the Minister of Commerce and other top officials.
Trump Last Executive Order -No entitled “Strengthening American Leadership in Digital Economic Technology” -Rew two days after the Securities and Exchange Commission, led by Cryptographic Republican Mark Uyeda, started one Task Force Crypto to “draw clear regulatory lines” for the purchase. Uyeda will also be part of the Presidential Working Group.
Former SEC President Gary Gensler has had a reputation in the encryption community to pursue a stricter cryptocurrencies.
Trump’s order also protects the rights of individuals to access, use, development and transaction in the public blockchain. This will formally protect blockchain activities as legal.
EO signed on Thursday abolishes Biden’s rules around cryptocurrencies and digital assets. In particular, he abolishes an executive order from former President Joe Biden who signed in 2022 to face the dangers and utilize the potential benefits of digital assets and underlying blockchain technology, underlining the need for consumer protection. Trump’s mandate also abolishes a framework published by the Ministry of Finance in 2022 on an international commitment to encryption and blockchain development.
While Biden -era policies focused on the mitigation of risks and international cooperation, Trump’s order prioritizes economic freedom and US sovereignty.
Another big difference is that Biden’s executive mandate addressed various federal services to explore the development of a digital currency of the US Central Bank (CBDC). Trump’s order prohibits CBDCS, which means that the government cannot create a digital version of the dollar directly controlled by the Central Bank. At the same time, the mandate promotes private stablecoins backed by the US dollar, with the aim of boosting dollar sovereignty in global trade and digital funding.
In other words, Trump marks its commitment to maintain cryptocurrencies under a decentralized financial system.
It is worth noting that Trump started a memecoin$ Trump, days before its inauguration. Memecoin was valued at $ 6.84 billion in Thursday afternoon. Critics warned that Trump’s distinctive erodes boundaries Among the political and business interests of the president, and some have argued that he has the things of a classic pump shape.
Previous administrations have approached the world with care with concerns that it can be easily used in combination with illegal and illegal activities, such as ransomware payments and money laundering. One of the most prophetic examples of Crypto’s dangers is the fall of the Crypto Trading FTX platform, which exposed mass fraud, embezzlement of capital customers and lack of regulatory supervision.
Many in the encryption industry argue that the FTX crash is precisely why it requires a clearer regulation designed for the industry. And there are some companies, such as Chainalysis, that have taken steps in creating confidence in Crypto providing software for compliance and research and monitoring of virtual currencies.
