In a transformative action for the entire cryptocurrency space, President Donald Trump has officially issued an executive order to create a national digital asset reserve, as he pledged during his campaign last year.
Presidential Working Group to Develop a Federal Framework for Cryptocurrencies
According to FOX journalist Eleanor Teret, Executive order He created the Presidential Task Force on Digital Asset Markets, a strategic initiative aimed at strengthening US leadership in cryptocurrencies.
This group is tasked with developing a comprehensive federal regulatory framework for digital assets, including stablecoins, which have gained popularity as a more stable form of cryptocurrency.
The working group will reportedly be chaired by David Sachs, the White House’s AI and cryptocurrency official. Members will include the Secretary of the Treasury, the Chairman of the Securities and Exchange Commission (SEC), and the heads of other relevant federal departments and agencies.
The new system bans central bank digital currencies
A key aspect of the executive order is its directive to federal departments and agencies to identify existing regulations that may hinder the growth of the digital asset sector.
The working group will evaluate recommendations to amend or abolish these regulations, with the aim of creating an environment more conducive to innovation and economic freedom.
Most importantly, the executive order expressly prohibits any federal agency from creating, issuing, or promoting central bank digital currencies (CBDCs).
Additionally, the order rescinds previous executive actions taken by the previous administration that were viewed as detrimental to the growth and innovation of digital assets.
By dismantling these frameworks, the current initiative seeks to remove barriers to entry and foster an environment in which digital finance can flourish.
At the time of writing, Bitcoin (BTC) has responded positively, posting weekly gains of 5% and reclaiming the $105,160 level.
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