Today, U.S. President Donald Trump signed an executive order (EO) related to Bitcoin and cryptocurrencies entitled “Strengthening U.S. Leadership in Digital Financial Technology.” This EO formally prohibits the creation and issuance of central bank digital currencies (CBDCs) in the United States, defining CBDCs as “a form of digital money or monetary value that is denominated in a national unit of account and is the direct responsibility of a nation.” I did. It's the central bank. ”
The order announced, “Except to the extent required by law, government agencies will be prohibited from taking any action to establish, issue, or promote a CBDC within or outside the jurisdiction of the United States.” “Except to the extent required by law, any ongoing plans or efforts by any government agency related to the creation of a CBDC within the jurisdiction of the United States will be immediately ceased, and no further action to develop or implement such plans will be taken. “Initiatives''.
The new EO will also create a federal regulatory framework to govern digital assets (including stablecoins) and establish a presidential task force to evaluate the creation of a strategic national digital asset stockpile.
“The working group's report shall consider provisions regarding market structure, surveillance, consumer protection, and risk management,” the order states. “The task force shall assess the potential for a national digital asset stockpile and recommend standards for establishing such a stockpile. Such stockpiles shall be legally secured by the federal government through law enforcement efforts. It may have come from virtual currency that was seized.
The EO defines the term “digital asset” as a digital representation of value recorded on a distributed ledger. This includes cryptocurrencies such as Bitcoin, digital tokens, and stablecoins.
The stockpile is expected to include Bitcoin or be entirely Bitcoin. At the Bitcoin 2024 conference in Nashville last summer, Donald Trump promised to create a national strategic Bitcoin stockpile using bitcoins already held by the government from hacks and seizures. did. According to data from Arkham Intelligence, the United States currently holds 198,109 Bitcoins worth more than $20.1 billion.
BREAKING NEWS: 🇺🇸Donald Trump vows never to sell #bitcoin Hold as a strategic reserve asset if elected president pic.twitter.com/bbPRxlZfGZ
— Bitcoin Magazine (@BitcoinMagazine) July 27, 2024
Following President Trump's speech at the conference, U.S. Senator Cynthia Lummis also introduced legislation to create a Strategic Bitcoin Reserve, but in a different way. Under his bill, the U.S. government would purchase 200,000 bitcoins annually for five years until it purchases a total of 1 million BTC. However, the bill must pass both the House and Senate before it goes to the President's desk for final approval.
So far, President Trump has kept the Bitcoin-related promises he made during the campaign. Earlier this week, President Trump granted a full and unconditional pardon to Bitcoin pioneer and Silk Road founder Ross Ulbricht, creating a Strategic Bitcoin Reserve, banning CBDCs, working groups/advisory He promised to accomplish that, in addition to establishing a committee.
Details of the Executive Order can be found here.
