Trump signs executive order promoting crypto, paving way for digital asset stockpile
CNBCJan 22
Trump Signs Executive Order to Ban Government Digital Dollar
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Above: In this photo illustration, a phone screen displaying a graphic chart showing an upward trend, with the label '$100K' is seen over another screen showing 'Bitcoin' coins and dollars created on Nov. 22, 2024. Image copyright: Hakan Nural/Contributor/Anadolu via Getty Images
The Facts
US Pres. Donald Trump signed an executive order (EO) on Thursday prohibiting the establishment of a central bank digital currency, while simultaneously creating a cryptocurrency working group to develop new digital asset regulations.
The EO established a President's Working Group on Digital Asset Markets to create a regulatory framework. It will be chaired by crypto czar David Sacks and include leaders from the Treasury, Securities and Exchange Commission (SEC), and Commodity Futures Trading Commission (CFTC).
The order directs the working group to evaluate the potential creation of a national digital asset stockpile, potentially derived from cryptocurrencies seized through federal law enforcement efforts, marking a significant shift in government cryptocurrency policy.
The Spin
Narrative A
Trump's EO banning central bank digital currencies is a game-changer for the crypto industry, fostering a more clear regulatory environment to attract big investors. By prohibiting central bank digital currencies, it protects privacy and sovereignty, boosting crypto legitimacy and the market value of existing cryptocurrencies like Bitcoin. This move could also spur institutional adoption of blockchain for payments, enhancing economic growth through crypto.
Narrative B
Trump's crypto policies, such as his crypto task forces, are more for the benefit of crypto industry executives who backed him than for the average American. Trump and his wife's meme coins are a clear hint as to where the president's true goals lie on this issue. Unlike the previous government's skepticism of private sector free-for-alls, Trump has chosen to let rich and powerful industry insiders make choices that will impact an entire country. This is a literal and metaphoric rug pull on the American people.
Cynical narrative
Both pro- and anti-central bank digital currency politicians are pushing for cryptocurrency surveillance, differing only in whether it's managed solely by the government or involves private sector collaboration. Pro-central bank digital currency advocates see government control as the key to financial stability, while anti-central bank digital currency supporters prefer a public-private partnership for market-driven solutions. However, both approaches will inevitably give big banks and regulators the power to spy on and control people's finances.
