BTC $81949.8
LTC $88.5149
SOL $121.874
DASH $21.1777
XMR $208.414
ETH $1856.54
ADA $0.716464
The crypto industry has become one of the biggest donors to Trump's presidential campaign after being besieged and attacked by regulations under the Biden administration, this executive order from Trump is proof that he is sticking to his campaign statement about making America the “crypto capital of the planet”.
The executive order lists key priorities for the digital asset industry, including protecting individuals and private sector companies using blockchain networks from “harassment.” The document spells out certain protections for developers and miners, noting that they should be free to “develop and deploy software” as well as “participate in mining and validation,” a nod to the technicians who secure the bitcoin network.
The decree mandates the creation of a special working group on cryptocurrencies, which will be tasked with assessing and updating the regulatory framework related to digital financial technologies. The group, chaired by David Sachs, special advisor on AI and cryptocurrencies, includes representatives from the Treasury Department, the Department of Homeland Security and other relevant agencies. Their task is to assess the strengths and weaknesses of existing regulations, propose improvements, and streamline compliance to foster innovation without compromising security and financial stability. In addition, the group will explore the creation of a national stockpile of digital assets that would strengthen the United States' strategic position in the global crypto economy. A preliminary report with recommendations is expected within 180 days of the order's issuance.
In a bold stance, the order explicitly prohibits the creation and adoption of a central bank digital currency (CBDC) within the United States. This reflects concerns about government overreach and the potential for privacy violations inherent in centralized digital currencies controlled directly by the government. The Administration emphasized that CBDC could undermine financial freedom and open the door to surveillance of private transactions. The decision is consistent with a broader strategy to preserve the decentralized nature of financial technology and ensure individuals' autonomy in their financial activities.
In opposition to the ban on CBDCs, the Executive Order encourages the development and global adoption of U.S. dollar-backed stablecoins. The Administration views dollar-backed stablecoins as a critical tool to reinforce the dollar's dominance in the global financial system, particularly in the rapidly growing digital asset sector. By encouraging private companies to innovate in this area, the government aims to ensure that the U.S. dollar remains the preferred and trusted currency in the digital age. Stablecoins are seen as a bridge between traditional financial systems and emerging technologies, providing stability for users and building confidence in U.S. financial leadership.
This executive order decisively departs from previous approaches by rescinding previous executive actions related to cryptocurrencies. The move signals the administration's intention to create a fresh and unified strategy to address the complex issues surrounding digital assets. By doing away with outdated policies, the government aims to remove regulatory ambiguity and conflicting directives that may have hindered innovation or created uncertainty for businesses operating in the sector. The aim is to create a more coherent and forward-looking framework that reflects current realities and promotes sustainable digital financial technology.
The Cryptocurrency Working Group is tasked with preparing detailed recommendations within 180 days of the signing of the decree. These recommendations will aim to provide regulatory clarity, foster innovation, and protect consumers while minimizing the risk of fraud and illegal activities. The panel is also expected to propose initiatives that will position the United States as a leader in the digital asset sector. This includes balancing the need for oversight with the flexibility required to develop new technologies and attract investment to the U.S. market.
The signed executive order could lead to significant changes in the regulation of cryptocurrencies in the US. The lifting of restrictions and the creation of a favorable regulatory environment may stimulate innovation and attract investment in the sector. However, the ban on CBDCs could limit the opportunities for the development of government-backed digital currencies. Overall, the decree is aimed at strengthening the US position in the global cryptocurrency industry and creating a more predictable legal environment for market participants.
0 Comments Found