Trump Signs Executive Order to Support Cryptocurrency Growth
Former US President Donald Trump has signed an executive order on cryptocurrencies, aiming to support their responsible growth and use. The order allows citizens to engage in the sector legally without prosecution and grants the right to self-custody of digital assets.
Trump, who once positioned himself as the 'crypto president' to appeal to bitcoin users, has now tasked a working group led by crypto and AI advisor David Sacks to evaluate the potential establishment of a state-owned crypto reserve. The group will also assess the current regulations, guidelines, and ordinances about digital vouchers, with a report due within 30 days.
The order seeks to strengthen the US dollar while promoting the growth of digital assets, including blockchain. It also aims to create regulatory clarity for the sector and protect US citizens from the risks associated with digital central bank currencies (CBDCs). The repeal of the SEC's SAB 121 directive, which previously hindered US banks from engaging in crypto custody services, could now pave the way for large-scale bitcoin-collateralized loans, crucial for the development of cryptocurrencies as an asset class. Some US states are already exploring legislative proposals for a bitcoin reserve, and the crypto community eagerly awaits Trump's concrete measures regarding cryptocurrencies.
The executive order signed by Donald Trump signals a shift in the US government's approach to cryptocurrencies, aiming to foster responsible growth while protecting citizens. The establishment of a state-owned crypto reserve and the creation of regulatory clarity are among the key goals, with the bitcoin community closely watching the developments.
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