TLDR
- In a significant executive decision, Trump has put in place the Presidential Working Group focused on Digital Asset Markets, helmed by David Sacks and Bo Hines, hinting at future national cryptocurrency reserves.
- The directive bars federal institutions from creating CBDCs and is designed to secure rights related to crypto dealings, mining activities, and the advancement of blockchain technologies.
- The SEC is gearing up with a newly minted crypto task force spearheaded by Hester Peirce, aimed at establishing 'practical disclosure systems' for cryptocurrency endeavors.
- This executive directive delves into the idea of forming a 'strategic national reserve of digital assets', though it conspicuously omits any specific mention of Bitcoin.
- Arkham’s current analysis indicates that the U.S. government possesses around $1 million in a mix of 16 cryptocurrencies, exclusive of Bitcoin.
On Thursday, President Donald Trump made his inaugural substantial engagement with cryptocurrency policy. signing an executive order Introducing the Presidential Working Group on Digital Asset Markets, this order lays the foundation for possible governmental ventures into digital currency holdings.
Named 'Bolstering American Dominance in Digital Finance Tech,' this executive order sets up a fresh advisory team to aid in crafting the administration's crypto policy and regulation outlook. Silicon Valley's venture capitalist David Sacks steps in to pilot the group as the White House's inaugural 'AI and crypto czar,' while former GOP congressional candidate Bo Hines takes on daily management.
Prominent government figures such as the Secretary of the Treasury and the heads of both the SEC and the CFTC are slated to be part of this task force. According to previous reports , expectations are set for the council’s expansion to involve an additional 20 crypto executives, prioritizing roles for industry leaders who supported Trump’s campaign.
Although the primary nature of the group is advisory, it represents a landmark official commitment by the administration in engaging with the crypto sector. The executive order assigns the task force the duty of investigating the formation of a 'strategic national stockpile of digital assets. The order makes no explicit reference to Bitcoin or other cryptocurrencies.
According to recent data from Arkham, the U.S. government holds an estimated $1 million worth in a variety of 16 cryptocurrencies apart from Bitcoin. Alex Thorn, who heads research at Galaxy Digital, explained that the concept of 'stockpile' is focused on retaining existing assets without necessarily acquiring more.
The jargon 'stockpile' implies maintaining current holdings, not the acquisition of more.
according to @arkham , here\"s a breakdown of the coins constituting the USG's $1m holdings pic.twitter.com/CtLEuP5utA
— Alex Thorn (@intangiblecoins) January 23, 2025
This executive decision also takes a clear stand against the adoption of central bank digital currencies, distinctly warning federal entities against devising these state-managed digital coins, reflecting the Republican critique of privacy issues tied to CBDCs.
To bolster crypto-related undertakings, the order reasserts the rights of American enterprises and individuals to engage in cryptocurrency transactions, self-manage digital assets, take part in mining operations, authenticate blockchain transactions, and craft blockchain applications.
Beyond this executive order, the administration’s crypto ventures are expanding. Recently, the SEC rolled out a new crypto task force guided by Commissioner Hester Peirce, indicating a pivot from earlier regulatory practices. The task force's mission is to implement transparent disclosure mechanisms for crypto-based projects and entities aspiring for legal compliance.
This strategic shift comes in response to critiques of the SEC's former 'enforcement-led' policy, which critics argue led to unpredictability and drove firms out of the U.S. The new task force is particularly geared toward establishing more reliable and pragmatic regulatory frameworks.
The order also annuls earlier crypto-focused directives, including the Treasury's International Digital Assets Engagement Framework, deemed by Trump’s team as stifling innovation and economic liberty.
Concurrently, state-led initiatives are taking shape alongside federal efforts. A number of states are contemplating bills to create their own Bitcoin reserves, while Senator Cynthia Lummis has put forward the 'Bitcoin Act' in the Senate to broaden the discussion of national crypto reserves.
Further executive orders might be on the horizon. Industry insiders foresee imminent action on multiple fronts, potentially overturning the SEC’s SAB 121 rule that currently opposes American banks' cryptocurrency holdings. Although Congress had previously nullified this ruling, ex-President Biden’s veto had sustained it.
The administration may also aim to tackle the SEC’s exchange regulations impacting DeFi projects, potentially directing federal bodies, inclusive of the State Department, to align crypto innovations with national priorities.
These shifts are surfacing as Bitcoin surged to a record $106,000 on Thursday, with market watchers partly attributing this boost to optimism surrounding Trump administration’s impending strategies.
The set-up of this working group signals the dawn of a new era in U.S. cryptocurrency policy, with expected developments as the administration deepens its digital asset roadmap.
