On January 23, 2025, United States President Donald Trump signed an executive order to establish a digital currency working group. The newly formed cryptocurrency working group will be assigned to developing new regulations for cryptocurrencies, including exploring the possibility of developing a national digital currency stockpile. The announcement is part of Donald Trump’s promise to overhaul US digital currency policy and cater to an industry eager for appropriate and supportive guidelines. The highly awaited action was also announced to protect the banking services for crypto companies, alluding to industry claims that US regulators have organized lenders to eliminate crypto organizations from banking services. The order also banned the development of central bank digital currencies in the United States which could fight with existing digital currencies.
Crypto Working Group
The newly established crypto working group will be led by the famous venture capitalist David Sacks, who was appointed by U S President Donald Trump as the crypto and AI czar in December 2024. The working group will include major figures from the Treasury Department, Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission, in addition to other agency heads.
The main objective of this crypto working group will be to create a regulatory framework that is suited for all kinds of digital assets. The team gave special attention to stablecoins, which is a popular form of digital currency that is pegged to the US dollar.
The crypto working group will also apparently look into developing and preserving a national stockpile of crypto assets that are lawfully seized by the U.S. government authority. The group will be operating under the National Economic Council.
Why Trump Supports the Crypto Industry?
US President Donald Trump has signed an order to create a cryptocurrency working group to create new regulations for digital currencies. In the early times, Trump was against cryptocurrencies and he made remarkable speeches about the risks associated with cryptocurrencies. However, eventually, Trump had to dive into the world of cryptocurrencies and understand the potential of cryptocurrencies.
On the election campaign trail, Trump praised digital currencies and became a ‘crypto president’. He promoted the adoption of digital assets.
In contrast, former President Joe Biden has implemented many regulations on cryptocurrencies to protect Americans from fraud and money laundering. He filed lawsuits on several crypto exchanges, such as Coinbase, Binance, and dozens more, alleging they were bypassing the law of the United States. However, the companies denied those allegations.
The crypto industry was fighting against the existing US regulations on digital currencies. Many advocates have argued for appropriate rules defining whether a digital currency is a security, a commodity, or falls into another category as a whole. The newly formed crypto working group addresses these concerns, helping to streamline the regulatory environment for digital currencies.
Conclusion
The newly established crypto working group will possibly resolve the issues faced by crypto enthusiasts in the United States. US President Donald Trump has taken the matter seriously and will make essential modifications to the regulations associated with cryptocurrencies. This will help crypto enthusiasts to buy, sell, and trade digital currencies seamlessly while getting support from the US government.