Trump's crypto order seen as opening fast track to friendly rules
The digital-asset sector finally received a supportive executive action from United States president Donald Trump, ending an anxious wait and opening up the tantalizing prospect of rapid progress toward a friendly regulatory backdrop.
The order signed on Thursday creates a working group of key agencies to advise the White House on crypto policy and says the industry plays a “crucial role” in U.S. innovation, economic development and international leadership.
The working group includes the Treasury and Justice Departments as well as the Securities & Exchange Commission and the Commodity Futures Trading Commission, among others. The sector had expected Trump to act as early as Monday after his inauguration but topics like trade and energy were first in line.
The working group will be tasked with submitting a report to the president within approximately six months recommending a regulatory framework and legislative proposals, including evaluating the creation of a crypto stockpile.
Under the rubric of supporting responsible growth of digital assets, the order throws its weight behind encouraging regulated dollar-backed stablecoins while seeking to prohibit central bank digital currencies. The latter, so-called CBDCs, pose risks to the financial system, privacy and U.S. sovereignty, the order adds.
Stablecoins are tokens pegged to fiat currencies, usually the U.S. dollar, and are often used to park funds between crypto trades. Their value is typically underpinned by reserves of cash and bonds. Some stablecoins are increasingly being used to make payments, for example in cross-border trade.
“The market will over time realize the executive order is a huge, historic win,” said Matt Hougan, chief investment officer at Bitwise
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