U.S. President Donald Trump has announced the creation of a working group to regulate the crypto market and outlined a plan for establishing a national crypto reserve. Key initiatives include banning the creation of state digital currencies (CBDCs) and revising regulations to safeguard crypto investors’ interests. Further details follow.
The Working Group and Its Objectives
According to a document titled “Strengthening American Leadership in Digital Financial Technology,” the working group will develop a unified regulatory framework for digital assets. It will include representatives from the Department of the Treasury, the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and other agencies.
The group will be led by venture capitalist and former PayPal executive David Sacks, also referred to as the country’s crypto “czar.” Among the priorities are classifying crypto assets, analyzing stablecoins for strengthening the dollar, and evaluating the potential to create a national crypto reserve.
Lifting Restrictions and Boosting Stablecoins
Following the announcement of the working group, the SEC released a document withdrawing SAB 121, which previously restricted companies and banks from storing clients’ cryptocurrencies. Firms can now legally offer such services — an action experts say could pave the way for mainstream crypto adoption.
Moreover, the Trump administration aims to expand the use of stablecoins as an alternative to state digital currencies, highlighting their role in bolstering the dollar’s global position. CBDCs, on the other hand, are deemed a threat to users’ freedom and have been excluded from the U.S. financial system’s roadmap.
The Concept of a National Crypto Reserve
One of the most-discussed initiatives is the proposal to establish a U.S. crypto reserve, potentially funded by crypto assets seized in law enforcement operations. This reserve would presumably be managed through the Treasury’s Exchange Stabilization Fund, although specifics are yet to be determined.
Community Reaction
These measures have garnered support within the crypto industry. Leaders of major crypto firms say the steps demonstrate the new administration’s resolve to foster innovation. Anchorage Digital CEO Nathan McCauley called Trump’s directives a “landmark step,” underscoring the importance of cryptocurrencies for the U.S. economy.
Nevertheless, the market did not experience an immediate surge upon the document’s release. Bitcoin had already hit a record of $109,000 on January 20 — before pulling back to around $105,000. Observers attribute the rise to optimistic expectations about the Trump administration’s crypto-friendly policies.
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