Trump has ordered the creation of a task force to evaluate the cryptocurrency reserve

On Thursday, President Donald Trump ordered the creation of a task force to propose federal regulations for “digital assets,” including cryptocurrencies, digital tokens and stablecoins, and to assess the national cryptocurrency reserve.

David Sacks, former PayPal COO and founder of VC firm Craft Ventures, Trump has chosen an artificial intelligence ‘tsar’ for cryptocurrency will lead the working group. The group will also include the Treasury Secretary, Attorney General, Commerce Secretary and other senior officials.

Trump’s final executive order Titled “Strengthening American Leadership in Digital Financial Technologies,” the Securities and Exchange Commission, currently chaired by crypto-friendly Republican Mark Uyeda, arrives two days later. crypto working group “drawing clear regulatory lines” for the market. Uyeda will also be part of the president’s task force.

Former SEC Chairman Gary Gensler had a reputation in the crypto community for pushing for stricter regulation of cryptocurrencies.

Trump’s executive order also protects the rights of individuals to access, use, develop, and operate public blockchains. This will officially protect blockchain activities as legal.

The EO signed Thursday repeals Biden-era regulations on cryptocurrencies and digital assets. Specifically, it repeals former President Joe Biden’s executive order signed in 2022, which emphasized the need to de-risk and exploit the potential benefits of digital assets and their underlying blockchain technology, while protecting consumers and investors. Trump’s order also revokes the Treasury Department’s 2022 framework for international participation in cryptocurrency and blockchain development.

While Biden-era policies focused on risk mitigation and international cooperation, Trump’s executive order prioritizes economic freedom and US sovereignty.

Another big difference is that Biden’s executive order directs various federal agencies to investigate the development of a US Central Bank Digital Currency (CBDC). Trump’s order bans CBDCs, meaning the government cannot create a digital version of the dollar directly controlled by a central bank. At the same time, the order promotes privately issued U.S. dollar-backed stablecoins with the goal of strengthening the dollar’s dominance in global trade and digital finance.

In other words, Trump is signaling his commitment to keep cryptocurrencies under a decentralized financial system.

It is worth noting that Trump released a memecoin Days before the $TRUMP inauguration. Memecoin was worth $6.84 billion as of Thursday afternoon. Critics warned it was a sign of Trump it erodes boundaries The president is between political and business interests, and some have argued that this has a classic character pump and discharge circuit.

Previous administrations have been wary of the cryptocurrency world, saying that cryptocurrency can easily be used in conjunction with illicit and illicit activities such as ransomware payments and money laundering. One of the most advanced examples of the dangers of cryptocurrency the collapse of cryptocurrency trading platform FTXit exposed massive fraud, misappropriation of customer funds and a lack of regulatory oversight.

Many in the cryptocurrency industry argue that the collapse of FTX is precisely why clearer regulation is needed for the industry. And there are some companies, e.g Chain analysishave made strides in building trust in cryptocurrency by providing a compliance and research program and monitoring virtual currencies.