President Trump signed an executive order on January 23 banning CBDCs in the U.S., establishing a task force to regulate cryptocurrencies. Trump’s order aims to create a national digital assets stockpile, including Bitcoin, while revoking a previous order by Biden. This action aligns with Trump’s campaign promises to support Bitcoin and includes plans for a strategic Bitcoin reserve, amidst questions of presidential authority over such measures.
On January 23, President Donald Trump signed an executive order outlawing the creation and issuance of central bank digital currencies (CBDCs) in the U.S. This order, dubbed “Strengthening American Leadership in Digital Financial Technology,” lays the groundwork for a presidential task force to formulate regulations on digital assets like cryptocurrencies and stablecoins, led by David Sacks, Trump’s appointed “AI and crypto czar.” The group is composed of high-profile officials, including the treasury secretary and heads of the SEC and CFTC, tasked with evaluating a national digital assets stockpile and issues of market oversight and consumer protection.
The envisioned stockpile will notably feature Bitcoin, with the government currently possessing over 198,000 Bitcoins valued at beyond $20 billion from various enforcement actions. At the Bitcoin 2024 Conference, Trump vowed to create a strategic Bitcoin reserve, utilizing seized assets for the nation’s interests. Senator Cynthia Lummis has proposed a bill encompassing the annual acquisition of 200,000 Bitcoins over five years, aspiring to build a million-Bitcoin reserve, although it requires congressional approval before reaching Trump’s desk.
This executive order overturns a 2022 action by former President Biden that encouraged a study into digital asset regulation, including potential CBDC development. Trump’s ban aligns with his campaign commitments to the cryptocurrency sector, pledging to oppose CBDCs and advocate for Bitcoin. He also recently granted a pardon to Silk Road founder Ross Ulbricht, fulfilling another campaign promise.
In a televised address, Trump reaffirmed his resolve to position the U.S. at the forefront of digital financial technology while alluding to more crypto initiatives, such as promoting Bitcoin’s domestic production, though specific details were sparse. While the executive order takes an assertive stance on digital currencies, it does raise questions regarding the extent of the president’s authority for such expansive measures. Historical precedents suggest potential challenges to Trump’s executive actions, highlighting a need for careful navigation as the newly formed group embarks on its task and legislative responses unfold.
In conclusion, President Trump’s recent executive order to ban CBDCs marks a significant pivot in U.S. cryptocurrency policy, establishing a task force to regulate digital assets. With the ambitious proposal to create a national Bitcoin stockpile in play, coupled with Trump’s commitment to supporting the crypto industry, future developments will be closely watched. The balance of regulatory authority and legislative actions will likely shape the landscape for digital currencies in the years to come.
Original Source: coinmarketcap.com
