In a transformative action for the whole crypto sphere, President Donald Trump has formally enacted an executive order to establish a national digital asset reserve, as pledged during his campaign last year.
Presidential Working Group To Develop Federal Framework For Crypto
According to FOX journalist Eleanor Terret, the executive order establishes the Presidential Working Group on Digital Asset Markets, a strategic initiative designed to bolster US leadership in the crypto arena.Â
This group is tasked with developing a comprehensive federal regulatory framework for digital assets, including stablecoins, which have gained popularity as a more stable form of cryptocurrency.
The Working Group will reportedly be chaired by David Sacks, the White House AI & Crypto Czar. Members will include the Secretary of the Treasury, the Chairman of the Securities and Exchange Commission (SEC), and heads of other relevant federal departments and agencies.Â
New Order Prohibits CBDCs
One key aspect of the executive order is its directive for federal departments and agencies to identify existing regulations that may hinder the growth of the digital assets sector.Â
The Working Group will evaluate recommendations for modifying or rescinding these regulations, aiming to create a more conducive environment for innovation and economic liberty.
Importantly, the executive order explicitly prohibits any federal agency from establishing, issuing, or promoting Central Bank Digital Currencies (CBDCs).Â
Additionally, the order revokes previous executive actions taken by the prior administration that were viewed as detrimental to the growth and innovation of digital assets.
By dismantling these frameworks, the current initiative seeks to remove barriers to entry and foster an environment where digital finance can thrive.
At the time of writing, Bitcoin (BTC) has responded positively, posting a 5% weekly gain and regaining the $105,160 level.Â
Featured image from DALL-E, chart from TradingView.comÂ
