President Donald Trump signed an executive order on Thursday, marking a significant pivot in his stance towards cryptocurrencies. The order aims to advance the development of digital assets in the United States and explore the creation of a national digital asset stockpile. This marks a stark contrast from his previous administration, where he was a vocal critic of crypto. Trump's new approach comes after a campaign with a strong pro-crypto message in 2024.
The executive order emphasizes the importance of establishing technology and regulatory frameworks to support the growth of cryptocurrencies within the country. A working group will be established to deliberate on the formation of a national digital asset stockpile. Historically, the U.S. Marshals Service has been responsible for auctioning off seized cryptocurrencies such as bitcoin, ether, and litecoin. However, Trump has vowed that during his administration, the federal government will retain its bitcoin holdings.
"If I am elected, it will be the policy of my administration, United States of America, to keep 100% of all the bitcoin the U.S. government currently holds or acquires into the future" – President Donald Trump
The executive order highlights the role of the digital asset industry in fostering innovation and economic growth in the U.S., as well as reinforcing the nation's global leadership.
"the digital asset industry plays a crucial role in innovation and economic development in the United States, as well as our Nation's international leadership" – The executive order
Crypto investors and companies played a significant role in Trump's 2024 campaign, contributing almost half of corporate donations. Several contributors even donated tens of millions to support his bid for a second term. In response to this burgeoning interest, Trump appointed David Sacks as his crypto and artificial intelligence czar. Sacks was present at the Oval Office during the signing ceremony.
"This is just the beginning of America reclaiming its position as the world's innovation leader" – David Sacks
The executive order sets forth a vision for the U.S. to become a global leader in digital asset innovation. To realize this vision, a "crypto task force" has been formed at the Securities and Exchange Commission (SEC), with Commissioner Hester Peirce at its helm. Additionally, Paul Atkins has been nominated to chair the SEC, and Scott Bessent, a pro-crypto hedge fund manager, has been chosen to lead the Treasury Department.
In terms of enforcement and regulation, the order suggests that part of the national digital asset stockpile could be derived from cryptocurrencies lawfully seized by federal law enforcement agencies.
"potentially derived from cryptocurrencies lawfully seized by the Federal Government through its law enforcement effort" – The executive order
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