On Thursday, President Donald Trump signed an executive procedure that addresses the main promises he made to the cryptocurrency industry during his 2024 campaign.
The matter said: “The digital asset industry plays an important role in innovation and economic development in the United States, as well as the leadership of our international nation.”
“Therefore, my administration policy is to support responsible growth and use digital assets.”
Here are the details of what the matter does and does not do, and its effects on the world of encryption.
Create a presidential working group on digital assets
The executive order creates a work team to coordinate the development of clear regulations for the digital asset industry.
This group, headed by the White House AI and Crypto Czar David Sacks, will include high -ranking officials such as Treasury Secretary and SEC president.
The group’s main tasks include defining all current regulations and policies that affect encryption within 30 days, as well as submit recommendations on these policies within 60 days.
The work group will also be asked to submit a comprehensive report with legislative and regulatory proposals within 180 days.
The CEO of Anchorage Digital Nathan McCauley praised this step, saying that it represents a “first important step” towards consistent and transparent organization.
National digital assets evaluation
While Trump stopped declaring the immediate creation of the “Bitcoin Strategic Strategic Stocks”, the matter directs the working group to evaluate his feasibility.
This evaluation includes exploring the potential use of encrypted currencies legally by the federal government as well as proposing criteria for managing and expanding this reserve.
The scope of this proposed stock can extend beyond Bitcoin, which includes other digital assets that have been seized through law enforcement procedures.
Blocking digital currencies of the Central Bank (CBDCS)
Trump threw his promise to ban the creation of CBDCS, which are an encrypted currencies controlled by the government.
According to the request, CBDC was defined as “a form of digital money or cash value, which is densely denied by the national unit of the account, and it is a direct responsibility of the central bank.”
According to Trump’s order, agencies are prevented from taking any action to create, issue or strengthen CBDCS within the jurisdiction of the United States or abroad.
They can only do this if it is required under the law.
With the exception of the limit required under the law, any ongoing plans or initiatives are completed in any agency related to the establishment of CBDC within the United States’s jurisdiction immediately, and no other measures may be taken to develop these plans or implement initiatives, ”read the matter.
While this ban is echoes with cautious encryption fans from overseeing the state, critics, such as Molly White encryption researcher, argue that it is largely symbolic, as no federal agency has seriously followed the CBDC initiative.
Biden’s executive order for 2022
Trump has previously canceled President Joe Biden, who focused on studying digital assets and addressing its potential risks.
This indicates the exit of Biden’s caution towards encryption and moving towards more industrial policies.
Reactions for the coding industry
Bitcoin (BTC) witnessed fluctuations after the advertisement, raised at the beginning and then falling, before settling a little higher over 24 hours.
The mixed market response reflects uncertainty about the immediate effect of the system.
Sean Farrell, head of digital assets at Fundstrat, commented in the Yahoo financing report that the procedure was “priced” by the market.
However, he pointed out that Trump’s pro -Carbuto’s position is “huge” for the long -term future of this industry.
Other developments currently underway reflect the effect of management.
For example, the Securities and Stock Exchange Committee (SEC) recently canceled accounting instructions (SAB 121), which hindered banks and brokers from providing encryption nursery services.
The post explained: Trump’s executive order to support the growth of cryptocurrency first appeared on Invezz
