Washington hosted the first official press conference dedicated to digital assets, featuring "crypto czar" David Sacks and key lawmakers supporting blockchain industry development. The event outlined the priorities of the new U.S. administration, including creating clear regulations for digital assets and the potential establishment of a strategic Bitcoin reserve.
Federal Regulatory Framework for the Crypto Industry
In his opening remarks, Sacks reminded the audience that one of Donald Trump’s first initiatives as president was an executive order supporting digital assets, blockchain technologies, and their integration into all areas of the economy. As part of this initiative, a task force was established to develop a federal regulatory framework for the crypto industry, including stablecoin regulation.
"Our goal is to fulfill the president's directive: to propose a federal regulatory structure to govern the issuance and use of digital assets in the U.S.," Sacks emphasized.
Moving Away from Repressive Policies on Crypto Business
Sacks also noted that the new administration aims to change the approach to regulating digital assets after four years of unstable policy, where litigation was the main tool of market regulation.
"Over the past years, I've talked to many crypto company founders, and they all say the same thing: they need regulatory transparency. They want to know the rules so they can comply. But instead, they faced arbitrary lawsuits. Some even lost bank accounts just for running a crypto business," he added.
To ensure the transparency of crypto laws, the SEC has launched a Crypto Task Force on its official website. SEC Commissioner Hester Peirce outlined the main priorities of the new task force:
- Defining which cryptocurrencies are securities and which are commodities.
- Creating a more "viable" path to registering crypto companies by changing existing SEC mechanisms.
- Clarifying whether crypto lending and staking programs fall under securities laws.
- Determining the SEC's jurisdiction over the crypto market.
- Reviewing Gary Gensler’s legacy, including controversial lawsuits and unfinished regulatory proposals.
- Working with other regulators for coordinated efforts.
- Ensuring investor protection and compliance with anti-fraud rules.
- Referring issues outside the SEC's jurisdiction to other regulators or Congress.
Peirce emphasized that changes will take time and require order, legal justification, and collaboration. In line with regulatory changes, the commission reduced its crypto oversight team by over 50 lawyers.
Acting Commissioner of the Commodity Futures Trading Commission (CFTC) Caroline Pham stated that the agency would no longer regulate through enforcement.
Support from Congress and the Senate
Senators and congressmen present at the press conference confirmed their readiness to work with the administration to create a legislative framework for digital assets.
Senator Tim Scott stated that the "golden age" of digital assets has already arrived and will only strengthen. He emphasized that Congress intends to actively collaborate with the White House on crypto regulation.
Congressman French Hill highlighted that the U.S. must take a leading position in financial technologies and digital assets, requiring legislative clarity.
Senator John Boozman reminded the audience that the crypto market includes different asset classes that require a differentiated regulatory approach. In his view, some digital assets are commodities and should fall under the CFTC, while others are securities and fall under the SEC’s jurisdiction.
U.S. Bitcoin Reserve
One of the key topics of the conference was the possibility of creating a state Bitcoin reserve. Sacks confirmed that the administration is considering this initiative.
"The president has tasked us with exploring the idea of a strategic Bitcoin reserve. This is one of the first items on our task force’s agenda," he said.
It was previously reported that the reserve would likely be managed through the U.S. Treasury's Exchange Stabilization Fund, but details remain unclear.
Review of AML Regulations
During the Q&A session, the possibility of revising Anti-Money Laundering (AML) legislation for crypto assets was discussed. Senator Scott expressed readiness for dialogue, emphasizing that the issue concerns not only digital assets but criminal activity in general.
Congressman Hill noted that AML standards should apply to the crypto industry just as they do in the traditional financial sector.
Need for Educational Initiatives
Representative Glenn Thompson raised the issue of lawmakers' lack of knowledge about cryptocurrencies and blockchain. He stressed the importance of educating congressmen and senators about digital assets to enable effective regulation.
Sacks supported this initiative, adding that one of his team’s goals is to provide access to educational materials and expert knowledge in this field.
Market Reaction
Initially, the market reacted with moderate growth, but by the end of the trading session, sentiments changed sharply. Disappointment over the lack of concrete action regarding the Bitcoin reserve and continued uncertainty about regulation led to a profit-taking sell-off.
Bitcoin lost its gains and fell below $97K after the press conference. The cryptocurrency dropped 4.8% during the day, reaching $96.9K, although it had been trading above $101K just two hours earlier. At the time of writing, the asset is trading at $97.8K.
