U.S. President Donald Trump has ordered the creation of a cryptocurrency working group. The group will propose new digital asset regulations and explore the creation of a national cryptocurrency stockpile. This action makes good on Trump’s promise to quickly overhaul U.S. crypto policy.
The order also protects banking services for crypto companies. The industry claims that U.S. regulators have directed lenders to cut crypto companies off from banking services, which regulators deny. The order bans the creation of central bank digital currencies in the U.S. that could compete with existing cryptocurrencies.
On the campaign trail, Trump promised to be a “crypto president” and promote the adoption of digital assets. This is different from former President Joe Biden’s regulators, who cracked down on the industry to protect Americans from fraud and money laundering. They sued exchanges, alleging they were breaking U.S. laws. The companies deny the allegations.
The crypto industry cheered Thursday’s order, which sends a strong signal of support in Trump’s first few days in office. If implemented, Trump’s order could push cryptocurrencies into the mainstream. It follows the U.S. Securities and Exchange Commission announcement that it was creating a taskforce to overhaul crypto policy.
Bitcoin hit a record high amid investor excitement over the new crypto-friendly administration. The industry has argued that existing U.S. regulations are not suitable for cryptocurrencies and has called for new ones to clarify when a crypto token is a security, commodity, or falls into another category.
The working group will include the Treasury secretary, chairs of the SEC and Commodity Futures Trading Commission, and other agency heads. They will develop a regulatory framework for digital assets, including stablecoins. The group will also evaluate the potential creation and maintenance of a national digital asset stockpile derived from cryptocurrencies lawfully seized by the Federal Government.
The order did not provide further details on how such a stockpile would be set up. Analysts and legal experts are divided on whether an act of Congress will be necessary. Some argue the reserve could be created via the U.S. Treasury’s Exchange Stabilization Fund, which can be used to purchase or sell foreign currencies and hold bitcoin.
In December, Trump named a venture capitalist and former PayPal executive as the crypto and artificial intelligence czar. He will chair the group. Bitcoin was down to about $103,000 as of late Thursday afternoon, after hitting a fresh record high of $109,071 on Monday.
