Donald Trump has begun his tenure as the 47th President of the United States with swift action, particularly in the realm of cryptocurrency. His administration has already taken significant steps that depart from the previous administration’s policies, signaling a new direction for U.S. cryptocurrency regulation.
Upon taking office, Trump signed a series of executive orders, including one highly anticipated directive concerning cryptocurrency. Key elements of this executive order involve the establishment of a working group of Cabinet officials and advisers, led by AI and crypto czar David Sacks, to identify and recommend necessary regulatory changes regarding digital assets. Notably, the order also calls for the evaluation of a digital asset stockpile and bans any form of central bank digital currency while revoking an earlier executive order from President Joe Biden that primarily focused on crafting reports on cryptocurrency and consumer protection.
Additionally, the U.S. Securities and Exchange Commission (SEC) has formed a crypto-focused task force led by Commissioner Hester Peirce, who aims to lead initiatives in alignment with Trump’s agenda. The SEC has already rescinded a controversial accounting bulletin that complicated how publicly traded companies handle digital asset holdings.
The Commodity Futures Trading Commission (CFTC), which is now under Acting Chair Caroline Pham, has appointed a lead advisor for cryptocurrency engagement, indicating a similar focus on the industry.
In a bold move, Trump pardoned Ross Ulbricht, the founder of the Silk Road, acknowledging the support from the Libertarian movement during his campaign. Moreover, he announced a rebranding of the U.S. Digital Service to his Department of Government Efficiency, headed by Elon Musk, drawing attention with initial links to Dogecoin.
On the legislative front, the Senate Banking Committee has officially created a subcommittee on digital assets, led by Sen. Cynthia Lummis, and is set to hold hearings relevant to cryptocurrency regulation soon. Notably, Sen. Ted Cruz has initiated proceedings to counter the IRS’s recent definition of “broker” concerning cryptocurrency tax reporting, which has raised the alarm among industry advocates.
The House of Representatives is also poised to investigate recent banking practices toward crypto companies and has planned hearings to discuss the implications of potential de-banking. Trump’s issuance of the TRUMP token has attracted scrutiny, prompting calls for a probe into its legitimacy and connections to financial entities.
As Trump’s administration unfolds, these initial actions signal a proactive approach to cryptocurrency regulation, differing significantly from previous federal policies. This dynamic environment suggests that the coming months will be critical for the landscape of digital assets in the U.S.
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