Although Donald Trump officially took office as president on Monday (that’s 4 days ago), the entire world was flooded with photos of him signing bills at a truly express pace. Among the many promises, a large part concerned finance and the world of crypto. So, what did fans of decentralized finance officially receive yesterday? Let’s take a look!
Crypto Working Group to draft new regulations
Half a year ago, at the July BTC conference in Nashville, Donald Trump presented a number of promises to this part of the electorate, focusing on several points. Some of them were fulfilled to some extent even before he officially took office, but after he won. We are talking about the chairman of the SEC – Gary Gensler, the main brake on the development of the crypto sector in America. Trump announced that he would fire him on the first day of his presidency, but this did not happen. Gensler himself announced he would resign on January 20 – on the inauguration day of the new president.
But we are going further. To implement broad changes in the crypto world, a special Working Group is needed to evaluate and propose solutions that promote the United States’ leadership in digital assets and financial technology while protecting economic liberty. David Sacks, the administration’s AI and crypto czar, will chair the group.
Timeline and National Digital Asset Stockpile
The U.S. Government Takes on Digital Assets!
As the new executive order emphasizes, key agencies like the Department of the Treasury, Department of Justice, and SEC will join forces under the chair’s leadership, focusing on market oversight, consumer protection, and risk management.
Here’s what’s on the agenda:
- 30 days to review: Agencies will identify existing rules and guidance related to digital assets.
- 60 days to recommend: Proposals for revising, rescinding, or formalizing regulations will follow.
- 180 days to deliver: The Working Group will present a comprehensive report to the President, including a federal framework for digital assets.
A significant highlight is the potential creation of a national digital asset stockpile. This would involve maintaining a reserve of cryptocurrencies, potentially sourced from assets lawfully seized by the government during enforcement actions. The stockpile could serve as a strategic tool, offering flexibility in managing the nation’s digital asset policies and potentially strengthening national financial security.
This initiative marks a bold step toward shaping the future of digital finance in the U.S.
No to CBDCs!
But that’s not all good news for decentralized and non-governmental finance advocates. Remember CBDCs? Digitally programmable central bank currencies that were subject to complete control by dignitaries, both in supply and expiration?
The U.S. government is now drawing a clear line: Central Bank Digital Currencies (CBDCs) are off the table. Here’s the deal:
- No creating or promoting CBDCs: Federal agencies are banned from developing, issuing, or advocating for CBDCs, whether in the U.S. or internationally.
- Existing projects shut down: Any ongoing plans related to CBDCs must be terminated immediately, with no further development allowed.
This bold move signals a strong stance against government-backed digital currencies, focusing instead on other aspects of digital asset innovation.
Clears the path for U.S. banks
And as if that weren’t enough, President Trump has officially removed a controversial SEC guideline that blocked U.S. banks from holding crypto assets. The rule, Staff Accounting Bulletin 121, required banks to classify customer crypto holdings as liabilities on their balance sheets, effectively discouraging them from offering custody services for digital assets.
This shift comes after a bill to eliminate the rule was passed by Congress last year but was vetoed by President Biden. Under the new administration, the SEC has now reversed course, marking a major victory for crypto advocates. Will this impact the development of the crypto market?
Even though this wasn’t a campaign promise, it’s already stirring excitement in the banking sector. Bank of America CEO Brian Moynihan hinted at the massive potential, saying, “If clear rules are set, the banking system will dive into the crypto space on the transactional side.”
This decision could open the door for traditional banks to enter the crypto market, making custody services a reality and bringing digital assets closer to the mainstream financial system.
Market’s reactions
One might say that the market reaction to the event’s importance is very balanced. Right now, altcoins seem to be moving more strongly, but let’s start with the market indicator, BTC.
BTC’s reaction to executive order.
The blue arrow indicates the time of the executive order announcement. The market reacted with a Darth Maul candle, with two wicks but a green body. Currently, an upward trend is visible, with an attack on local peaks, as well as on ATH from 4 days ago. The bull camp is supported by the price remaining above EMA50 and EMA100 and the long-awaited golden cross on H4 MACD.
It is worth paying attention to the words. Although Trump promised to provide a Strategic Reserve of BTC, here we are dealing with the National Digital Asset Stockpile. Although BTC is indeed a form of digital asset, it is not the only one. Altcoins also meet this requirement. Looking at Trump’s economic patriotism, we are probably talking about those created in the US, and an example of such is Solana.
Solana’s reaction.
As we wrote quite recently, Solana reached its next ATH, which may have been indirectly due to Trump’s creation of his cryptocurrency on this blockchain. The price also holds above EMA50 and EMA100, and a timid, bullish crossover is visible on the MACD. Where will this take us?
Conclusion
President Trump’s rapid moves are shaking up the crypto world, paving the way for innovation while shutting down CBDCs and outdated rules. The creation of a National Digital Asset Stockpile and clearing the path for banks to enter the crypto space signal a bold commitment to making the U.S. a global leader in digital finance.
With BTC trending upward and altcoins like Solana hitting new highs, the market is already responding. This is just the beginning—watch closely as the U.S. positions itself at the forefront of the crypto revolution. Buckle up; the future of digital assets looks brighter than ever!
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