President Trump recently instigated the organization of a task force to oversee cryptocurrencies, digital tokens, and stablecoins. The task force, comprised of top-ranking officials, will propose federal regulations for these digital assets and scrutinize the nation’s crypto stockpile.
Leading this working group will be Trump’s crypto and AI expert, David Sacks, a former PayPal COO and founder of VC firm Craft Ventures. High-ranking members from the Treasury, attorney general’s office, and secretary of Commerce have also been enlisted to join the team.
Termed “Strengthening American Leadership in Digital Financial Technology”, this executive order is a response to the formation of a crypto task force by the SEC, led by Mark Uyeda, to ensure tighter regulation of the market. Previous SEC chairman Gary Gensler was known for his rigorous regulatory approach towards cryptocurrencies.
Besides proposing formal regulations, Trump’s order shields individuals engaged in blockchain activities, establishing them as lawful operations. This order also revokes Biden-era policies concerning digital assets, particularly the executive order from 2022 which sought to leverage the advantages of digital assets while mitigating associated risks.
While the previous administration prioritized risk mitigation, Trump emphasizes U.S. economic independence and sovereignty. Prohibiting the creation of a U.S digital currency by the central government while promoting privately issued dollar-backed stablecoins stands in stark contrast to Biden’s approach.
In spite of the controversy surrounding Trump’s own memecoin ($TRUMP), this policy shift indicates a commitment to maintaining a decentralized financial system. With the crypto industry facing scrutiny due to its potential misuse in illicit activities, clear regulations and compliance could help establish trust in this evolving domain.
Original source: Read the full article on TechCrunch
