Hannah Lang and Trevor Hunnicutt
(Reuters) -President Donald Trump on Thursday ordered the creation of a cryptocurrency working group, whose task is to propose recent regulations regarding digital assets and examine the creation of national cryptocurrency stocks, which gives the promise of a quick review of American cryptocurrency policy.
The long -awaited activities also ordered to protect banking services for cryptocurrency companies, referring to industry claims that American regulatory authorities recommended lenders to cut off cryptographic companies from banking services – something that regulatory bodies deny. The order also banned the creation of the US Central Bank’s digital currencies in the USA, which could compete with existing cryptocurrencies.
On the trail of the campaign, Trump turned to Crypto Cash, undertaking to be “cryptographic president” and promoting the acceptance of digital assets. This is a clear contrast with the bodies of former former president Joe Biden, who, trying to protect Americans from fraud and money laundering, ignited from the industry, sued the exchange of Coinbase (Nasdaq :), Binance and several dozen more, claiming that they stunned American laws. Companies deny the allegations.
Thursday’s order was cheered by the cryptographic industry, which sought a recent administration to send a mighty signal of support in the first few days of Trump’s office.
“Today’s executive ordinance of cryptography means a change in the sea in the policy of digital resources in the US,” said Nathan McCouley, general director and co-founder of Crypto Company Anchorage Digital.
“When accepting the whole government’s approach to cryptocurrencies, the administration takes a significant first step towards writing bright, coherent road principles.”
If they are implemented by the relevant regulatory bodies, Trump’s order can potentially push cryptocurrencies into the mainstream, regulatory and cryptographic experts. This is due to Tuesday’s announcement of the Securities and United States Committee that it creates a task group to review cryptocurrency policy.
On Monday, he reached a fresh record level of 109,071 USD among the investor excitement with a recent cryptocurrency affable administration, although it was about USD 103,000 from tardy Thursday afternoon.
“Just a few days after his administration, President Trump fulfills his promises … To maintain the United States of the leader of innovation in the field of digital assets,” said Senator Tim Scott, a republican chairman of the Senate Banking Commission in a statement.
Industry for years argued that existing US regulations are inappropriate for cryptocurrencies and called congress and regulatory authorities to write recent explanants when the cryptographic token is security, goods or belongs to another category.
The working group, which will include the secretary of the treasury, chairman of SEC and the Commodity Futures Trading Commission, together with other agency bosses, is designed to develop a framework of regulatory digital assets, according to the order. This includes Stablecouins, a kind of cryptocurrency usually set to an American dollar.
The group is also established to “assess the potential creation and maintenance of domestic supplies of digital assets … potentially from cryptocurrencies legally confiscated by the federal government through its efforts of law enforcement agencies.”
The order has not been provided for further details about how such a supply will be established, and analysts and legal experts are divided whether a congress act will be needed. Some claimed that the reserve could be created via the US Treasury Exchange Stabilization Fund, which can be used to buy or sell foreign currencies, as well as for storing bitcoins.
In December, Trump called Venture Capital and former PayPal (Nasdaq 🙂 Executive David Sacks as a crypto and artificial intelligence. The order is chaired by the group.
