President Trump made headlines yesterday with the release of his first executive order on cryptocurrency. The announcement caused quite a stir on Crypto Twitter, bringing to mind President Biden’s own executive order on crypto from March 2022. Let’s take a closer look at what Trump’s order entails and how it differs from Biden’s approach.
On CBDCs
Trump’s executive order takes a firm stance against central bank digital currencies (CBDCs), prohibiting federal agencies from establishing, issuing, or promoting them. The order also calls for the immediate termination of any ongoing CBDC projects, citing concerns about the potential threats to financial stability, individual privacy, and US sovereignty.
In contrast, Biden’s administration took a more nuanced approach to CBDCs, acknowledging both the merits and potential risks associated with a US CBDC. The administration directed agencies to create a report on the future of money and payment systems, which ultimately led to recommendations for advancing work on a CBDC and prioritizing improvements to cross-border payments.
On "protection"
When it comes to security and consumer protection in the realm of digital assets, Biden and Trump diverge in their perspectives. Biden’s executive order focused on safeguarding consumers from the risks of investing in and engaging with cryptocurrencies, highlighting national security concerns and the potential for illicit actors to exploit digital assets.
Trump’s executive order also emphasizes the importance of protection, but with a focus on maintaining the dominance of the US dollar and shielding citizens from the perceived dangers of CBDCs.
The Working Group
Trump’s executive order establishes a Working Group on Digital Asset Markets, led by "crypto czar" David Sacks. This group includes key figures such as the chairs of the CFTC and SEC, the attorney general, and the secretaries of the Treasury and Homeland Security. The Working Group is tasked with evaluating the potential creation and maintenance of a national digital asset stockpile, derived from cryptocurrencies lawfully seized by the federal government.
In contrast, Biden did not create a similar working group or crypto-specific advisory council. Instead, the President’s Working Group on Financial Markets was tasked with producing a report on the risks associated with digital assets, recommending potential legislative action to address these risks.
As the industry reacts to Trump’s executive order, there is a sense of anticipation for potential progress that may surpass the outcomes of Biden’s order. The involvement of well-funded lobbyists on Capitol Hill could play a significant role in shaping the future of cryptocurrency regulation and policy.
Only time will tell how Trump’s executive order will impact the crypto landscape, but the industry’s response suggests that significant developments may be on the horizon. Stay tuned for further updates on this evolving story.
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