Donald Trump made a decree to promote the cryptocurrency industry. It includes several measures, including the creation of a strategic reserve of cryptos in the United States.
Donald Trump finally holds his promises with regard to the cryptocurrency industry. On Thursday, January 23, the American president issued an executive decree to promote this industry which “plays a crucial role in innovation and economic development in the United States”.
The Trump administration will create a specialized working group on cryptocurrencies, chaired by the special adviser Artificial Intelligence (AI) and Cryptos of the White House (David Sacks) and surrounded in particular by the Secretary of Treasury and Trade. This group will be responsible for “canceling” or “modify” many regulations and documents which “affected” previously the crypto industry before. In 180 days, this group will submit a report to Donald Trump with “regulatory and legislative” proposals for industry.
Several sites are being studied. The first objective of the Trump administration is essential, in accordance with the principle of decentralization of cryptos. Individuals are free to participate in the crypto ecosystem. Citizens can for example use “legal” blockchains without “persecution”, participate in cryptocurrency mining, make transactions with other “without censorship” (as bitcoin wants) or keep yourself their cryptos.
In addition, the Trump administration, which now defines the term “digital asset”, will have to provide regulatory “clarity” for the sector, while there is a regulatory vagueness. The Trump working group will therefore have to offer a “federal regulatory framework governing the issue and exploitation of digital assets, including stablecoins, in the United States”. According to many experts, the Trump administration should ask the American stock market regulator (the “dry”) to develop new clarifying rules whether or not cryptocurrency is a financial title.
-Strategic reserve, stablecoins and cryptodollar
On the other hand, this group “will assess the potential creation and maintenance of a national stock of digital assets (…) potentially derived from cryptocurrencies legally seized by the federal government within the framework of its application efforts of the law “.
No details were made on the cryptocurrencies concerned, even if two projects have already been mentioned. There is already that of Donald Trump, which would consist in establishing a national bitcoin reserve, based on the bitcoins already seized by the American justice. As a reminder, the United States has more than 207,189 bitcoins, being the first country in the world to have so many bitcoins. In parallel, the American senator Cynthia Lummis has a bill entitled “Bitcoin Act” including in particular the establishment of a national bitcoin reserve. The idea is that the United States bought up to 200,000 bitcoins per year for 5 years to bring acquisition to 1 million bitcoins, or 5% of the total bitcoin offer in circulation.
Finally, the new administration intends to promote “sovereignty of the dollar” through the development of stablecoins (stable cryptocurrencies) “legal and legitimate”, backed by the dollar. Donald Trump also prohibits the federal reserve from advancing on its cryptodollar, the issue of a digital currency being considered a risk for “financial stability”.
