It will reportedly reinforce President Donald Trump’s executive order on digital assets issued on Thursday (January 23). Cord property and Circle Internet Finance.
Trump orders alignment of stablecoins with government efforts to maintain global supremacy of dollar, Bloomberg I mentioned Friday (January 24).
The executive order is intended in part to protect the dollar, “including through actions to promote the development and growth of StableCoins backed by legal and legitimate dollars,” according to the report.
The order also blocked a potential competitor to StableCoins by blocking the development of a central bank digital currency (CBDC), the report said.
StableCoins Issues by Tether and Circle – USDT and USDCrespectively — accounting for nearly 90% of the stablecoin’s value, per the report.
“the [executive order] “It demonstrates that the United States will also be a leader in the free-market, rules-based competition for the movement of money.” Dante Depart Bloomberg said.
Tether did not comment on the potential impact of the executive order, but said in the report: “We hope that new regulations will provide much-needed clarity to companies, institutions, and technical technology companies looking to enter the digital asset space.”
Stablecoins have become significant proxies for the dollar as they are used for payments and transferring funds with increasing frequency, according to the report.
White House AI and Crypto Czar David Sacks said Thursday, according to the report, that StableCoins provide “an opportunity to expand the dollar’s dominance internationally.”
Trump’s executive order also established a Presidential Task Force on Digital Asset Markets and tasked it with developing a federal regulatory framework governing digital assets as well as considering the creation of a “strategic national digital asset stockpile.”
Pymnts reported on Friday that the order touched on many of the crypto sector’s wants, needs and concerns.
Its outright ban on CBDC development in the US may spur creativity in private sector development, and the promise of regulatory clarity may allow StableCoin issuers to focus on scaling infrastructure and integrating their offerings with existing payment networks.
It was reported on January 13 that stablecoins were already increasingly heralded as a bridge between traditional finance and the cryptocurrency world.
