- The crypto club will think about building a stockpile of digital assets.
- The Trump claims that the actions will "make a lot of money" for the US.
President Donald Trump signed executive orders that might support two emerging industries: cryptocurrencies and artificial intelligence.
White House AI and crypto czar David Sacks, a prominent political donor and venture capitalist, accompanied the president.
With the participation of important government agencies including as the Treasury Department, Justice Department, Securities and Exchange Commission, and Commodity Futures Trading Commission, the crypto order establishes a working group to advise the White House on issues pertaining to digital assets.
Within roughly six months, the panel will be expected to return to the president with recommendations for legislation and a regulatory framework, including an assessment of the establishment of a digital asset stockpile.
Kara Calvert, vice president for US policy at Coinbase Global Inc., the largest cryptocurrency exchange in the US, stated, “It definitely changes the fundamentals on the ground.” “Your president has established an advisory board that acknowledges the need for non-government expertise and appreciates digital assets. That is truly thrilling.
However, the order received conflicting responses from other members of the crypto community. Bitcoin supporters are disappointed because, contrary to what many had predicted, the decree did not state that the biggest cryptocurrency will be at the heart of a national reserve. Trump had supported the concept.
According to Zaheer Ebtikar, founder of the cryptocurrency fund Split Capital, “what cryptocurrency Twitter wanted is very different from what reality is.” When you consider it, the US government’s purchase of a single Bitcoin will be highly symbolic since all other governments will follow suit and purchase it as well. It is as hopeful as actual news can get to assess a possible national digital asset stockpile.
Following the announcement of the executive actions, Bitcoin fell about 1% to $102,750. Since Trump was elected, the value of the original digital currency, which makes up more than half of the cryptocurrency’s market value, has increased by more than 50%.
In a reference to Trump, Sacks stated that the team would “make America the world capital on crypto under your leadership.”
The US would be able to “dominate and to lead the world in AI” thanks to the artificial intelligence initiative, he continued.
Do you think they’re exciting? Regarding the steps, Trump stated, “They may not be, but they will generate a significant amount of revenue for the nation.”
Trump’s directive is a major step in keeping his campaign pledges to support the emerging cryptocurrency sector. On the trail, he pledged to support a stablecoin framework, create a Bitcoin stockpile, simplify rules, and appoint crypto-friendly individuals to supervise the sector. He has already fulfilled several of his pledges, such as appointing a large number of agency heads who are supportive of cryptocurrency.
Ross Ulbricht, the creator of the infamous website Silk Road, which used Bitcoin to sell illegal drugs, was also pardoned by him; the cryptocurrency community strongly supported this decision.
These promises signaled a change for Trump, who had previously expressed doubt about digital assets before embracing the sector, promoting his own cryptocurrency initiatives and luring business leaders and fans to support his campaign.
Trump and his sons unveiled World Liberty Financial, an unlaunched initiative that aims to enable anyone to earn and borrow cryptocurrency, last year. They also released a new set of nonfungible coins featuring their visage. Then, in January, Trump and his spouse introduced two meme coins, which have already amassed a market value in the billions.
The executive decree is also a victory for a sector of the economy that increased its political contributions during the previous election.
FAQ
The executive orders focus on two emerging industries: cryptocurrencies and artificial intelligence (AI). These orders aim to enhance the U.S.’s global competitiveness and create substantial revenue opportunities.
The executive order establishes a working group involving key agencies like the Treasury and SEC to advise on digital asset legislation and regulatory frameworks. It also explores the possibility of creating a national digital asset stockpile.
Reactions are mixed. While some, like Coinbase’s Kara Calvert, see the advisory board as a positive step for acknowledging the importance of digital assets, others are disappointed that Bitcoin is not central to a national reserve as previously speculated.
Trump pledged to support a stablecoin framework, create a Bitcoin stockpile, simplify regulations, and appoint crypto-friendly leaders. He has already taken steps, such as granting pardons to crypto-related figures and promoting cryptocurrency initiatives.
The AI initiative aims to position the U.S. as a global leader in artificial intelligence, enabling innovation and ensuring America’s dominance in this critical technology sector.
