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U.S. President Donald Trump has just signed an executive order establishing a national digital asset reserve, according to an announcement from the White House. This move marks a significant step in his commitment to the cryptocurrency industry, further solidifying America's leadership role in the digital finance sector.
The executive order emphasizes the importance of digital assets in driving innovation and economic development in the U.S., as well as strengthening the country's international standing. President Trump stated:
"The digital asset sector plays a crucial role in driving innovation and economic growth in America, and it affirms our international leadership position. My administration's policy is to support the responsible development and adoption of digital assets, Blockchain technology, and related technologies across all economic sectors."
Key Contents of the Executive Order
The executive order establishes the President's Working Group on Digital Asset Markets, led by David Sacks, the White House's Chief Advisor on AI & Crypto. The group includes the Secretary of the Treasury, the Chair of the Securities and Exchange Commission (SEC), and leaders from other relevant agencies.
The working group will be responsible for developing a federal regulatory framework to manage digital assets, including stablecoins, as well as evaluating the feasibility of establishing a national strategic digital asset reserve. Some key objectives and timelines of the order include:
- Within the first 30 days: Agencies such as the Treasury Department, SEC, and Department of Justice will identify existing regulations that impact the digital asset sector.
- Within 60 days: Agencies must provide recommendations on whether to amend, rescind, or maintain the relevant regulations.
- Within 180 days: The working group must submit a report to the President, proposing legal and regulatory measures to advance the policy in the executive order.
A notable point in this order is the prohibition on federal agencies from issuing or supporting the development of central bank digital currencies (CBDCs). Trump has been a vocal opponent of CBDCs, viewing them as a threat to financial freedom.
"Except as required by law, agencies are prohibited from taking any action to establish, issue, or promote CBDC within or outside the United States."
The order also requires the immediate termination of any ongoing plans or initiatives related to CBDCs at federal agencies.
Trump's executive order officially overrides the Biden administration's digital asset policies, which have been criticized for stifling innovation and undermining America's economic freedom. According to Fox, the previous regulations had diminished the U.S.'s competitiveness in the digital finance sector.
Impact on the Cryptocurrency Market
The executive order is expected to drive up the value of cryptocurrencies, thanks to the increasing attention from institutions and nations. While the order does not specify any particular cryptocurrencies, experts predict that the national reserve may include Bitcoin, XRP, and other digital assets.
Establishing a national digital asset reserve not only creates transparency in the cryptocurrency space but also reinforces America's position as a leading hub for digital financial innovation.
