No, Trump Didn’t Create A Bitcoin Stockpile #CriptoNews

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In a highly anticipated executive order by the cryptocurrency community, President Trump took his first set of actions governing digital assets earlier today. However, despite rumors circulating beforehand that claimed that the President would set up a cryptocurrency reserve, in his executive order titled Strengthening American Leadership In Digital Financial Technology, Trump aimed at the previous administration’s actions, a new working group for digital markets and a ban on central bank digital currencies.

Trump Sets Up Digital Asset Working Group Through First Crypto Executive Order Since Taking Power

The Trump executive order starts out by revoking President Biden’s Ensuring Responsible Development of Digital Assets order issued by him in March 2022. The order had directed authorities to investigate methods to monitor digital assets and investigate America’s development of a central bank digital currency (CBDC). A CBDC is simply a digital variant of a country’s fiat currency, and Trump’s order also targets CBDCs.

It directs agencies to stop taking any action that might lead to the development of a CBDC and stop existing actions as well. Along with prohibiting CBDCs and revoking the previous administration’s executive order, Trump’s action also targets a Treasury Department framework that aimed at working on the Biden-era executive order for digital assets.

While the Strengthening American Leadership In Digital Financial Technology executive order does aim at actions by the previous administration, its salient feature is the establishment of a working group within the National Economic Council on digital asset markets. The economic council is the principal forum through which the President analyzes economic issues, and as a result, he chairs it.

Trump’s working group will include secretaries of the Treasury, Commerce and Homeland Security along with the Attorney General and heads of the SEC and CFT. The working group will evaluate regulations and orders related to digital assets and present to the President a report outlining which regulations should be adopted within 180 days.

This report will primarily cover two areas. The first will include rules for a federal framework that governs digital assets through the lens of “market structure, oversight, consumer protection, and risk management.“

The second area is where a potential Bitcoin or strategic cryptocurrency reserve comes into play. While President Trump did not immediately set up a reserve through the executive order, he has ordered the working group to study the matter in detail before making a recommendation.

The portion of the executive order outlining a reserve is as follows:

The Working Group shall evaluate the potential creation and maintenance of a national digital asset stockpile and propose criteria for establishing such a stockpile, potentially derived from cryptocurrencies lawfully seized by the Federal Government through its law enforcement efforts.

The President’s actions are rational considering the significant policy framework required to set up a first-of-a-kind digital asset reserve. By requiring his team to evaluate all of the rules and regulations surrounding digital currency and recommending criteria, Trump appears to be taking it slow toward setting up a national digital asset stockpile. Such a stockpile could include assets such as stablecoins, which are pegged to currencies and commodities and lend the reserve more stability than those found in cryptocurrency markets.