TL;DR
- Donald Trump signs an executive order to create the “Digital Asset Working Group” with the goal of establishing a federal regulatory framework for cryptocurrencies.
- The group, led by David Sacks, will work on the classification of digital assets and the incorporation of stablecoins into the traditional financial system.
- Sacks suggests that the digitalization of the dollar could reduce national debt and interest rates, and the creation of a “national digital treasury” is being considered.
The President of the United States, Donald Trump, signed an executive order to create the “Digital Asset Working Group.”
The goal is to establish a federal regulatory framework for cryptocurrencies. This measure responds to the growing need to address regulatory challenges for the industry and ensure the nation’s leadership in the digital financial sector.
🚨NEW: Highlights from @DavidSacks interview with @FoxBusiness:
📌Digital Assets Working Group will develop a regulatory framework by 1) Implementing a market structure and defining what is a digital asset, a security, commodity, collectible, etc. 2) Extending the dollar’s… https://t.co/vTqaK56rbm
— Eleanor Terrett (@EleanorTerrett) January 23, 2025
The group will be led by David Sacks, the current AI and Crypto Czar at the White House, who will coordinate the work of officials, including the Secretary of the Treasury, the Attorney General, the Secretary of Commerce, and the heads of the SEC (Securities and Exchange Commission) and CFTC (Commodity Futures Trading Commission).
This team has six months to deliver recommendations on a federal regulatory structure that encompasses legislative proposals regarding digital assets and their classification into categories such as securities, commodities, or collectibles.
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The working group will also focus on how to incorporate stablecoins into the traditional financial system. Sacks emphasized that stablecoins could be a more favorable option than central bank digital currencies (CBDCs), which he believes pose a threat to financial freedom.
Additionally, Sacks suggested that digitalizing the U.S. dollar could have additional benefits, such as increasing the demand for Treasury bonds and reducing pressures on national debt. In turn, this could lower long-term interest rates.
One of the initiatives still on the table is the creation of a “national digital treasury.” While no details were provided on how this idea would integrate with the current asset system, Sacks pointed out that strategic regulation will be crucial to overcome all the challenges. The proposal aims to equip the government with a tool to manage digital assets efficiently and securely.
