Author: Li Dan
Source: Wall Street Journal
After taking office, Trump took action on crypto, signing an executive order aimed at promoting the development of the crypto industry. In addition, there is good news for the crypto community from the US Congress: a member of Congress who first proposed the establishment of a Bitcoin strategic reserve in the US has been "promoted".
On Thursday, January 23, Eastern Time, the White House announced that US President Trump has signed an executive order titled "Strengthening America's Leadership in Digital Asset Technology". The order requires the establishment of a "President's Working Group on Digital Asset Markets" within the National Economic Council, which advises the President.
The above working group will be led by David Sacks, the White House's first AI and Crypto Czar, who was appointed by Trump. The working group members also include the US Treasury Secretary, Attorney General, Commerce Secretary, SEC Chairman, CFTC Chairman, and other government and regulatory officials or their designees.
The executive order also explicitly mentions that the Trump administration is considering whether to use Bit as a national reserve for the US. The order states that the above working group will, within 180 days of the issuance of the executive order, submit a report to Trump with regulatory and legislative recommendations, focusing on: managing a federal regulatory framework for the issuance and operation of US digital assets, including stablecoins, considering provisions on market structure, oversight, consumer protection and risk management, and
The above working group "should assess the feasibility of establishing and maintaining a national digital asset reserve, and propose standards for establishing such a reserve, which may include crypto seized by the federal government through law enforcement efforts."
However, amid the market excitement, there is still a key uncertainty: whether the executive order is only to establish a national Bit reserve based on existing funds seized from criminal activities, or to establish a larger-scale reserve that can purchase more Bit over time.
The executive order also expressly prohibits central bank digital currencies (CBDCs). The order states:
"Except as required by law, all (federal government) agencies are hereby prohibited from taking any action to develop, issue, or promote CBDC within or outside the United States."
The executive order requires that any government agency currently engaged in plans or initiatives related to the establishment of a CBDC in the United States must immediately cease and take no further action to develop or implement such plans or initiatives.
Sacks said the new working group will, under Trump's leadership, "make America the world capital of crypto" and its actions in AI will make the US "dominant in AI and lead the world." Trump said these actions "will make a lot of money for America."
US Senate Banking Committee Establishes Digital Assets Subcommittee, Focusing on Strategic Bit Reserve Legislation
Earlier on Thursday, Senate Banking Committee Chairman Tim Scott appointed Wyoming Senator Cynthia Lummis as chair of the committee's new Digital Assets Subcommittee. Lummis subsequently issued a statement announcing that this new committee focused on digital assets will focus on two areas:
- Bipartisan digital asset legislation to promote responsible innovation and protect consumers, including legislation on market structure, stablecoins, and a strategic Bit reserve;
- Strict oversight of federal financial regulators to ensure they comply with the law, including ensuring there is no repeat of Operation Chokepoint 2.0.
Operation Chokepoint 2.0 is allegedly an action taken by US federal government agencies to exclude crypto companies from the traditional banking system, but no official document has yet confirmed its existence.
Last July, Trump promised at the Bit 2024 conference to list Bit as a strategic reserve asset for the US. As Trump's ally in the Senate, Lummis first proposed the Strategic Bit Reserve Act in that month, which would require the sale of some of the Federal Reserve's gold reserves to purchase 1 million Bit, establishing the "strategic Bit reserve" proposed by Trump. At the time's Bit price, this would cost about $90 billion.
In this week's statement, Lummis again mentioned legislation related to the strategic Bit reserve. She said:
"Digital assets represent the future, and if America wants to maintain its global leadership in financial innovation, Congress needs to urgently pass bipartisan legislation to establish a comprehensive legal framework for digital assets and strengthen the dollar through a strategic Bit reserve... I look forward to introducing bipartisan legislation to President Trump this year to secure our financial future."
The news of Lummis' appointment quickly ignited the crypto market. On Thursday, the spot trading price of Bit against the US dollar briefly surged and turned positive during the trading session.
CoinMarketCap data shows that the spot trading price of Bit against the US dollar first fell below $101,300 to a new daily low during the European trading session, but accelerated its rebound after the US market open, rising above $106,800 to a new daily high by the end of the morning session, up over $5,000 or more than 5% from the daily low, approaching the intraday record high of over $109,000 set on Monday. But the US stock market returned to a downtrend in late trading, and Bit fell back below $103,000 after the US stock market close, down more than 1% in the last 24 hours.
