US President Donald Trump on Thursday ordered the formation of a cryptocurrency task force tasked with proposing new regulations for digital assets and exploring the establishment of a national cryptocurrency reserve. The move underscores his commitment to quickly changing cryptocurrency policy in the US.
The much-anticipated move also mandates protections for banking services for cryptocurrency companies. It addresses industry claims that US regulators have ordered lenders to stop providing banking services to crypto companies – something the regulators have denied. The order also prohibits the creation of a central bank digital currency (CBDC) in the US that could compete with existing cryptocurrencies.
In another significant move supported by the cryptocurrency industry, the US Securities and Exchange Commission (SEC) has withdrawn accounting guidance that had increased the cost for some listed companies to protect third-party crypto assets. The crypto industry says the guidance is hindering the use of digital assets.
During the election campaign, Trump attracted support from the crypto community by promising to be the “Crypto President” and promote the adoption of digital assets. This is in stark contrast to former President Joe Biden’s tough stance on the industry, accusing many crypto exchanges of violating US law.
Trump’s move on Friday was welcomed by the crypto industry, which had been hoping the new administration would send a clear signal of support in its first days in office.
“Today marks a major shift in US digital asset policy,” said Nathan McCauley, CEO and co-founder of crypto company Anchorage Digital.
“With a whole-of-government approach to crypto, this administration is taking an important first step toward establishing clear and consistent rules.”
If implemented by relevant regulators, Trump’s order has the potential to bring cryptocurrencies into the mainstream, according to legal and crypto experts. The move follows an announcement on Tuesday by the SEC of the formation of a task force to overhaul crypto policy.
Bitcoin hit a new record high of $109,071 on Monday as investors cheered the new crypto-friendly administration, although its value fell to around $103,000 early on Friday.
The working group will include the Treasury Secretary, the chairmen of the SEC and the Commodity Futures Trading Commission (CFTC), along with heads of other agencies. Their task is to develop a regulatory framework for digital assets, including stablecoins.
