The cryptocurrency market is experiencing a significant shift following President Trump’s initial term, with new executive orders and actions aimed at regulating the industry. A working group has been formed to identify regulations that address crypto and recommend changes, while a ban on central bank digital currency has also been implemented.
State of Crypto: Trump’s Second First Week
Donald Trump and the GOP hit the ground running in his first week as the new U.S. president, with a flurry of executive orders and actions that set the tone for what’s to come.
Trump’s Executive Order on Crypto
One of the most anticipated executive orders was signed by President Trump on crypto. The order creates a working group composed of Cabinet officials, White House advisers, and others tasked with identifying regulations that address crypto and recommending whether they should be changed. David Sacks will chair this working group, and the task force is also responsible for evaluating a digital asset stockpile.
Ban on Central Bank Digital Currency
The executive order also includes provisions to ban any central bank digital currency (CBDC), with a somewhat broad definition of what constitutes a CBDC. This move has significant implications for the development of digital currencies in the U.S.
Revoking Former President Biden’s Executive Order
Trump’s administration also revoked former President Joe Biden’s executive order on crypto, which directed various departments to craft reports on different aspects of crypto and consumer protections.
SEC Takes Action
The U.S. Securities and Exchange Commission (SEC) has formed a crypto-focused task force headed up by Commissioner Hester Peirce. One of the SEC’s first moves was to rescind Staff Accounting Bulletin 121, which directed publicly traded companies holding crypto for their clients to mark those holdings on their own balance sheets.
CFTC Takes Action
The Commodity Futures Trading Commission (CFTC) is now operating under Acting Chair Caroline Pham. Pham has named CFTC Senior Policy Advisor Harry Jung as the regulator’s lead for crypto industry engagement.
Trump Pardons Ross Ulbricht
President Trump pardoned Silk Road creator Ross Ulbricht, who was convicted on criminal enterprise, narcotics distribution, and various conspiracy charges. This move has significant implications for the crypto community, with many seeing it as a victory for free speech and entrepreneurship.
Senate Takes Action
The Senate Banking Committee has confirmed the creation of a subcommittee focused on digital assets, led by Sen. Cynthia Lummis (R-Wyo.). The subcommittee’s other members include freshmen Bernie Moreno (R-Ohio) and Ruben Gallego (D-Ariz.).
House Takes Action
The House Oversight Committee sent out a letter announcing it would investigate whether banks de-banked crypto companies at the government’s behest. The House Financial Services Committee has also scheduled two hearings on crypto next month.
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What’s Next?
The next few weeks will be crucial in shaping the future of crypto in the U.S. With multiple hearings and investigations scheduled, it’s clear that the new administration is taking a serious look at the industry. As always, we’ll continue to provide you with updates on the latest developments.
Note: The views expressed in this article are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.
- coindesk.com | State of Crypto: Trumps Second First Week
