President Donald Trump signed an executive order on Thursday, marking a significant shift in the United States' approach to cryptocurrencies. The directive seeks to advance the development of digital assets and establish a national digital asset stockpile. This move represents a notable change for Trump, who was previously critical of cryptocurrencies during his first administration but has since garnered substantial support from the crypto industry.
The executive order underscores the importance of digital assets in driving innovation and economic growth. It states:
"The digital asset industry plays a crucial role in innovation and economic development in the United States, as well as our Nation's international leadership."
Trump's campaign trail saw him promising to transform the federal government's stance on bitcoin holdings, which the U.S. Marshals Service has historically auctioned off. In contrast, Trump declared:
"If I am elected, it will be the policy of my administration, United States of America, to keep 100% of all the bitcoin the U.S. government currently holds or acquires into the future."
This policy shift aligns with Trump's broader strategy to make the U.S. a global leader in digital asset innovation. The order calls for the establishment of a working group to explore creating a national digital asset stockpile, potentially sourced from lawfully seized cryptocurrencies.
"Potentially derived from cryptocurrencies lawfully seized by the Federal Government through its law enforcement effort."
Scott Bessent, a pro-crypto hedge fund manager, has been appointed as Trump's pick to lead the Treasury Department. He recently attended the Crypto Ball in Washington, gathering lawmakers, cabinet appointees, and industry leaders. The administration's commitment to fostering a crypto-friendly environment extends to regulatory appointments as well.
Paul Atkins has been nominated to chair the Securities and Exchange Commission (SEC). Known for his market-friendly policies, Atkins opposes heavy-handed regulation, aligning with Trump's vision for a more supportive regulatory framework. Additionally, Commissioner Hester Peirce, dubbed "Crypto Mom" for her advocacy of digital currencies, will lead a new "crypto task force" at the SEC.
The executive order is part of a broader initiative to position America as an innovation leader. David Sacks commented on the significance of this step:
"This is just the beginning of America reclaiming its position as the world's innovation leader."
Crypto investors, companies, and executives played a pivotal role in supporting Trump's 2024 campaign, contributing nearly half of all corporate donations. This financial backing underscores the industry's stake in shaping national policy on digital assets.