Important points
- President Trump has issued an executive order establishing the Presidential Task Force on Digital Asset Markets, moving us closer to strategic preparation for Bitcoin.
- Speculation about a strategic Bitcoin reserve is growing as Cynthia Lummis leads bipartisan digital asset legislation efforts.
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President Donald Trump signed an executive order establishing the Presidential Task Force on Digital Asset Markets.
The order aims to create federal regulations for digital assets, including stablecoins.
Additionally, the task force will evaluate the creation of a strategic national digital asset stockpile to fuel speculation about potential Bitcoin reserves.
The executive order states that this stockpile may originate from crypto assets legally seized by the federal government through law enforcement efforts.
At the time of writing, the U.S. government holds $21 billion in confiscated digital assets, mostly made up of Bitcoin, with more than 198,000 bits stored in its wallets, according to Arcam data. . These seized assets may be transferred or used to create stockpiles.
White House AI and crypto czar David Sachs will chair the task force, which includes the Treasury Secretary and SEC Chairman.
The order expressly prohibits federal agencies from promoting or establishing central bank digital currencies and reverses previous administration policy regarding digital assets.
The order's mention of the possibility of a national digital asset stockpile has sparked discussion about the establishment of a strategic Bitcoin reserve.
Adding to the momentum was the election earlier today of Senator Cynthia Lummis as chair of the Senate Banking Subcommittee on Digital Assets.
Lummis announced that the subcommittee's priorities include passing bipartisan legislation to foster responsible digital asset innovation and considering the establishment of a strategic Bitcoin reserve.
He also vowed strict oversight of federal financial regulators to prevent efforts like Operation Chokepoint 2.0 from resurfacing.
Bitcoin rose 2% to $106,300 on the news, before settling at $105,000.
President Trump, speaking via livestream at the World Economic Forum in Davos, said his administration aims to make the United States the “capital of the world” for cryptocurrencies.
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