Behind Trump's push for cryptocurrency policy

New U.S. President Donald Trump signed a major executive order on January 23, 2025, establishing a cryptocurrency task force aimed at drafting new digital asset regulations and exploring the feasibility of creating a national cryptocurrency reserve. The move marks a major overhaul of the U.S. government's cryptocurrency policy, intended to position the United States as a leader in the global cryptocurrency space.

The cryptocurrency Task force is led by David Sacks, the Trump-appointed commissioner of Artificial Intelligence (AI) and cryptocurrencies, and includes the heads of key departments, or their designees, such as the Treasury Secretary, Attorney General, Secretary of Commerce, Chairman of the U.S. Securities and Exchange Commission (SEC), and Chairman of the Commodity Futures Trading Commission (CFTC). According to the executive order, the task force is required to submit a report within 180 days with regulatory and legislative recommendations for digital assets. The report will focus on establishing a comprehensive federal regulatory framework that covers the issuance and operation of digital assets and considers multiple factors such as market structure, oversight, consumer protection, and risk management.

The implications of Trump's push for new regulations on cryptocurrencies are manifold. First, from an industry perspective, the move is widely supported by the cryptocurrency industry. Christine Smith, CEO of the Blockchain Association, hailed the executive order as a "major step forward for the industry" and said Trump was making good on his promise to "make the United States the cryptocurrency capital of the world." Anchorage Digital CEO Nathan McCauley also noted that the order marks a "sea change in U.S. digital asset policy" and is an important first step in the administration's efforts to develop clear, consistent regulatory rules.

Second, from the national level, this executive order of Trump seeks to explore the possibility of establishing a national cryptocurrency reserve, which the US government can not only use to obtain more wealth, but also to occupy a dominant position in the global cryptocurrency field. In addition, the ban on the issuance and promotion of central bank digital currencies (CBDC) is also out of consideration for the stability of the U.S. financial system, personal privacy and national sovereignty.

Moreover, from a global perspective, the United States, as an important power in the global economy, will undoubtedly have a profound impact on the global cryptocurrency market. Other countries are likely to pay close attention to U.S. policy moves and adjust their own cryptocurrency policies accordingly. This will promote the standardized and integrated development of the global cryptocurrency market, laying the foundation for the wide application of cryptocurrencies around the world.

It is worth noting that there is also good news for the cryptocurrency industry coming from the US Congress. Senate Banking Committee Chairman Tim Scott announced the appointment of Wyoming Senator Cynthia Lummis, who pioneered the idea of creating a strategic reserve of Bitcoin last year, to chair the new Digital Assets Committee. Scott said he looks forward to working closely with the President and his task force to bring more clarity and opportunity to important sectors of the 21st century economy. The support of Congress will provide a stronger guarantee for the development and implementation of new regulations on cryptocurrencies.

In short, Trump's push for new cryptocurrency regulations will have a profound impact on the global cryptocurrency market. With a clear regulatory framework and active policy support, the United States is expected to dominate the global cryptocurrency space and drive the development of the cryptocurrency industry.