President Donald Trump has signed an executive order to prohibit the creation of a “digital dollar” in the form of a central bank digital currency (CBDC).
Trump’s order seeks to clarify regulations in the cryptocurrency industry to “secure America’s position as the world’s leader in the digital asset economy.”
The move establishes the Presidential Working Group on Digital Asset Markets.
The group will develop a federal regulatory framework for digital assets, including stablecoins, and evaluate the creation of a strategic national digital assets stockpile.
It will be chaired by the White House AI and crypto czar and include the treasury secretary and the chairman of the Securities and Exchange Commission (SEC), as well as other relevant department and agency heads.
Additionally, the executive order prohibits agencies from establishing, issuing, or promoting central bank digital currencies.
It directs other federal agencies and departments to provide the group with recommendations about digital asset regulations that should be rescinded or modified.
It also revokes the Biden administration’s digital assets executive order framework for international engagement in the industry.
The order is seen as a major victory for advocates of cryptocurrencies, such as Bitcoin, and a huge blow to anti-freedom globalists pushing to eliminate physical cash.
“President Trump will help make the United States the center of digital financial technology by halting aggressive enforcement actions and regulatory overreach that have stifled crypto innovation under previous administrations,” the White House announcement said.
As the president signed the order, Trump’s cryptocurrency czar David Sacks said the move will “make America the world capital of crypto.”
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The executive order comes after Trump touted a crypto-friendly approach to regulating the growing industry during his presidential campaign.
He pledged at a crypto conference he attended last summer to make the U.S. the “crypto capital of the planet” and the “Bitcoin superpower of the world” if elected.
Trump is also planning to establish a federal Strategic Bitcoin Reserve.
In a statement responding to Trump’s order, Perianne Boring, The Digital Chamber founder and CEO, said:
“This is a huge development for Bitcoin and digital assets.
“We’re coming off of four years of the Biden administration trying to, you know, effectively shut down and push out the entire cryptocurrency ecosystem from the United States.
“So they now have this kind of support.
“The support from the highest levels of government legitimizing the importance and the promise of this technology is incredibly important for our economic security and our national security.”
Former President Joe Biden’s administration, through then-SEC Chair Gary Gensler, carried out a regulatory crackdown on the digital assets industry.
The Biden admin’s efforts held America’s crypto industry back while other nations advanced.
Gensler resigned from the agency on Inauguration Day after Trump repeatedly vowed to “fire” the SEC chief.
Trump appointed SEC Commissioner Mark Uyeda, a Republican appointee, as the agency’s acting chair while his nominee to serve as the new permanent chair, Paul Atkins, awaits Senate confirmation.
Uyeda’s first official action was to create a new crypto task force led by GOP Commissioner Hester Peirce.
Peirce is often referred to as “Crypto Mom.”
The task force will foster a dialogue with industry players to promote a friendlier regulatory environment by focusing on drawing clear regulatory lines, providing realistic paths to registration, crafting sensible disclosure frameworks, and deploying enforcement resources.
It will also coordinate those activities with other federal agencies, including the Commodity Futures Trading Commission, which is poised to take on a larger role in crypto regulation.
Bitcoin prices were up slightly on Thursday in advance of the news.
However, they later pulled back slightly as the industry awaits confirmation of a Strategic Bitcoin Reserve, which will send prices soaring even higher.
The largest cryptocurrency by market value remains north of the $100,000 level.
This year alone, Bitcoin prices have already gained over 10% after surging by around 125% in 2024.
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