On this date, U.S. President Donald Trump formalized his administration’s position on Bitcoin and cryptocurrency by signing an executive order (EO) entitled “Strengthening American Leadership In Digital Financial Technology.” The instruction includes a restriction on the facility and issuance of a reserve bank digital currency (CBDC) within the United States, identifying a CBDC as “a form of digital money or monetary value, denominated in the national unit of account, that is a direct liability of the central bank.”
The executive order clearly mentions, “Except to the extent required by law, agencies are hereby prohibited from undertaking any action to establish, issue, or promote CBDCs within the jurisdiction of the United States or abroad.” The order even more mandates that any continuous efforts by companies associated with the production of a CBDC need to be ended right away, without any subsequent actions allowed towards the advancement or execution of such efforts.
Moreover, this executive order starts the development of a governmental working group focused on establishing a federal regulative structure for digital possessions, that includes stablecoins, and evaluating the facility of a tactical nationwide digital possessions stock.
The text of the order notes, “The Working Group’s report shall consider provisions for market structure, oversight, consumer protection, and risk management.” It also advises the group to check out the prospective production and management of a nationwide digital property stockpile, perhaps sourced from cryptocurrencies that have actually been legally taken by the Federal Government through enforcement activities.
The executive order specifies “digital asset” as any digital representation of worth tape-recorded on a dispersed journal, therefore incorporating possessions such as Bitcoin, digital tokens, and stablecoins.
It is prepared for that the proposed stockpile will consist of Bitcoin, in positioning with President Trump’s earlier dedication made at The Bitcoin 2024 Conference in Nashville. During this occasion, he vowed to develop a nationwide tactical Bitcoin stockpile using the Bitcoin presently held by the federal government, which has actually been obtained through hacks and seizures. Data from Arkham Intelligence shows that the U.S. currently holds 198,109 Bitcoin, valued at over $20.1 billion.
BREAKING: 🇺🇸 DONALD TRUMP PLEDGES TO NEVER OFFER #BITCOIN AND HOLD IT AS A TACTICAL RESERVE PROPERTY IF ELECTED PRESIDENT pic.twitter.com/bbPRxlZfGZ
— Bitcoin Magazine (@BitcoinMagazine) July 27, 2024
In the consequences of Trump’s address at the conference, U.S. Senator Cynthia Lummis proposed her own legal effort to develop a Strategic Bitcoin Reserve, taking a various technique. Her proposition involves the U.S. federal government getting 200,000 Bitcoin every year for a duration of 5 years, culminating in a target of 1,000,000 BTC. However, this legislation should effectively browse both the House of Representatives and the Senate before reaching the president for last permission.
Thus far, President Trump has actually shown a dedication to the Bitcoin-associated promises articulated throughout his project. Most just recently, he approved a complete and genuine pardon to Bitcoin leader and Silk Road creator Ross Ulbricht, satisfying a guarantee along with other dedications, consisting of the facility of a Strategic Bitcoin Reserve, the restriction of CBDCs, and the development of a working group/advisory council.
For those interested, extensive information relating to the executive order can be accessed here.
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