US President Donald Trump on January 23 signed an executive director in the Oval Office to establish a working group on cryptocurrencies. The committee will be headed by venture investor and Trump government's 'Crypto Czar' David Sacks. The other members of the group include the secretary of the treasury and the chairman of the Securities and Exchange Commission.
According to the directive signed by Trump, the 'President's Working Group on Digital Asset Markets' was tasked to identify all regulations and orders that affect the digital asset sector, and submit their recommendations on what should be modified or rescinded.
"The digital asset industry plays a crucial role in innovation and economic development in the United States, as well as our Nation’s international leadership. It is therefore the policy of my Administration to support the responsible growth and use of digital assets, blockchain technology, and related technologies across all sectors of the economy," it read.
What does the 'Crypto Czar' say about the executive order?
Donald Trump had appointed David Sacks as the White House AI and Crypto Czar in December last year. Speaking about the latest executive order, Sacks said it was aimed to make the US the global leader in both crypto and AI.
"President Trump campaigned to be the first crypto President. He earlier described how he would change the regulatory environment for crypto and he is now acting on that promise. He has directed our working group to produce a regulatory framework that's going to encourage innovation in crypto in the United States, keeping industry on shore rather than driving it off-shore, which was what was happening under the Biden administration," he said while speaking to Fox Business.
"For the last four years, the Biden administration had basically prosecuted and persecuted crypto companies, really driving them offshore. I have heard so many outrageous stories by founders and entrepreneurs. The Biden administration would not tell them what the rules on the road where, and they would then get prosecuted. What the industry wants more than anything else is regulatory clarity," he added.
The directive ordered the group to submit its recommendations on a regulatory framework about the issuance and operation of digital assets, including stablecoins. The committee shall also evaluate the possible creation of a national digital asset stockpile, which may essentially be created with cryptocurrencies seized by the US government.
US President Donald Trump has signed an executive order to form an internal working group on crypto aimed at making America the world capital in crypto. It also prohibited the establishment of central bank digital currencies.
Trump's promise to make United States the crypto capital of the planet
The White House on January 23 said, "Trump is fulfilling his promise to make the United States the crypto capital of the planet." At the signing ceremony at the Oval Office, Sacks said, "We're going to be forming an internal working group to make crypto, to make America the world capital in crypto under your leadership." Trump, in a brief response, said crypto is "going up".
Later, the White House said Trump would help make the US the centre of digital financial technology innovation by halting "aggressive enforcement actions and regulatory overreach that have stifled crypto innovation under previous administrations".
"Trump's policy vision marks an unprecedented step towards welcoming in a new era for digital financial technology; one in which President Trump's administration will work towards ensuring innovation thrives, regulatory frameworks are clear, and economic liberty is protected," it said.
The growth of digital financial technology in America must remain unhindered by restrictive regulations or unnecessary government interference, the White House added.
(With inputs from PTI)
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