On Thursday, President Donald Trump signed an executive order to support the domestic cryptocurrency industry and investigate the creation of a new national digital asset stockpile, furthering his pledge to make the United States the “crypto capital of the planet.”
The United States’ economic growth and innovation, as well as our country’s leadership, are greatly influenced by the digital asset sector. Therefore, Trump administration’s objective is to encourage the responsible development and application of blockchain technology, digital assets, and associated technologies in all economic sectors.
A strategic national digital assets stockpile will be evaluated, and a federal regulatory framework governing digital assets, including stablecoins, will be developed by the new Presidential Working Group on Digital Asset Markets, which will be established in accordance with the order.
According to the report, crypto assets seized during criminal investigations have historically been auctioned off by federal law enforcement.
The directive states that the Treasury secretary, the chairman of the U.S. Securities and Exchange Commission, and “the heads of other relevant departments and agencies” will join the committee, which will be chaired by White House AI and crypto czar David Sacks.
The goal of the initiative is to “eliminate regulatory overreach on digital assets and protect American economic liberty,” according to a White House information sheet that goes with the order.
Trump’s reversal on cryptocurrency
During his first term, Trump criticized the digital currency market, calling it a “scam.” However, in the lead-up to the 2024 election, he changed his mind. He has recently changed his stance to support cryptocurrency and made several campaign promises to foster an environment that is conducive to the industry. During his speech at a cryptocurrency conference this summer, he made a number of pro-crypto remarks, including the pledge that “the rules will be written by people who love your industry, not hate your industry” under his administration.
Last month, Trump fulfilled his promise by appointing Paul Atkins to lead the Securities and Exchange Commission. Atkins is well-known for being a fervent advocate for the bitcoin sector. He was an SEC commissioner from 2002 to 2008.
When Trump announced the selection on Truth Social in December, he emphasized Atkins’ position on digital currency.
Trump wrote, “Paul is a proven leader for common sense regulations.” He sees the potential for strong, creative capital markets that respond to investor demands and supply funding to elevate our economy to the top of the global economy. Additionally, he understands that inventions and digital assets are essential to making America better than it has ever been.
How Trump’s election to a second term affected cryptocurrency markets
The cryptocurrency market has seen value rises due to Trump’s support for digital currencies. Bitcoin, for example, first crossed the $100,000 threshold in early December and briefly approached $110,000 before a slight decline in price. The digital token saw a gain of over 100% by the end of 2024, with almost half of that gain occurring following Trump’s election triumph in early November.
Prior to the inauguration on Monday, Bitcoin reached a new high value benchmark of over $109,000 before settling later in the day. Bitcoin was trading for little under $107,000 per token at noon on Friday.
Ahead of Monday’s inauguration ceremony, the president and first lady Melania Trump both released their official Trump and Melania meme coins, making their own forays into the cryptocurrency markets.
On January 17, the Official Trump token went on sale for about $6.50. According to the report, the coin was worth slightly more than $33 at midday on Friday, with a market value of almost $6.6 billion.
The Melania currency was trading for just $2.60 at noon on Friday, down below its January 19 opening market value of little under $8.50.