President Trump signed a notable executive order on cryptocurrencies in his first week, introducing significant regulatory changes to reshape the digital asset landscape.
Upon being sworn in as the 47th President of the United States, Donald Trump quickly set a new direction for his administration by focusing on the cryptocurrency sector among his initial actions.
Executive Orders and New Appointments
The executive order established a working group led by AI and crypto czar David Sacks, which includes Cabinet officials and White House advisers. This group is tasked with reviewing current regulations that govern cryptocurrencies and recommending necessary changes.
Additionally, the order prohibits any central bank digital currency (CBDC) under a broad definition. It revokes a previous order from Joe Biden’s administration that directed departments to report on crypto and consumer protections.
In a strategic move, Trump appointed Hester Peirce, a known advocate for cryptocurrency regulations, to head a new crypto-focused task force within the U.S. Securities and Exchange Commission (SEC).
This task force’s first action was to rescind a directive that affected how publicly traded companies account for cryptocurrency holdings, easing previous requirements and signaling a more favorable regulatory stance towards the crypto industry.
Legislative and Community Responses
Following these executive actions, the Senate confirmed the creation of a subcommittee on digital assets, demonstrating a legislative focus on cryptocurrency.
Additionally, Trump’s decision to pardon Ross Ulbricht, the Silk Road marketplace founder, was justified as a nod to the Libertarian movement, highlighting the political undertones of his crypto policies.
The industry response has been cautiously optimistic, with stakeholders interpreting these moves as a potential for more balanced crypto regulation.
However, controversies remain, such as the creation of the TRUMP token and its scrutiny by Senator Elizabeth Warren, suggesting ongoing debates about the intersection of politics, regulation, and digital currencies.