Trump's Aggressive Moves on Virtual Assets... Establishment of a Presidential Task Force

Nullifying the Biden Administration's Legacy
Fostering Technologies Such as Blockchain and Stablecoins
Trump Signs, Saying "It Will Bring Enormous Wealth"

President Donald Trump signed an executive order on the 23rd (local time) that includes the establishment of a 'Presidential Task Force on Virtual Assets.' The order also repeals the digital asset regulatory policies set by the previous Biden administration and includes deregulation measures to support the growth of related technologies such as blockchain and stablecoins, raising expectations within the industry.

President Trump signed the executive order aimed at strengthening U.S. leadership in the digital financial technology sector. Along with digital assets, the order also covers artificial intelligence (AI) and other areas, with Trump commenting, "Is it interesting?" and adding, "It may not be interesting, but it will bring enormous wealth to the United States."

The executive order specifically includes ▲the establishment of a virtual asset task force directly under the President's Economic Council ▲a ban on Central Bank Digital Currency (CBDC) ▲the repeal of Executive Order 14067 (Ensuring Responsible Development of Digital Assets) issued in March 2022 ▲and the immediate repeal of the 'International Engagement Framework on Digital Assets' announced in July 2022.

In particular, the White House explained the purpose of this policy by stating that "the digital asset industry plays a crucial role in American innovation, economic development, and international leadership." This reflects the current administration's positive view toward virtual assets. The White House also clearly stated its direction by saying, "We support the responsible growth and utilization of digital assets, blockchain technology, and related technologies across all sectors of the economy."

The market expects the presidential task force to play a key role in the 'strategic reserve of Bitcoin,' which could serve as a strong upward momentum for Bitcoin. Bloomberg News noted, "Although the executive order does not explicitly mention Bitcoin, it directs the task force to assess the potential creation and maintenance of a national digital asset reserve derived from virtual assets lawfully seized by the federal government through law enforcement."

The executive order also includes a plan to create and present federal regulations on virtual assets, including stablecoins, within 180 days. Stablecoins are coins pegged one-to-one with fiat currencies such as the dollar. It also explicitly prohibits the establishment, issuance, and promotion of CBDCs, which the Federal Reserve (Fed) had been reviewing. Previously, President Trump had argued since his presidential campaign that CBDC research and issuance should be blocked due to privacy concerns. This stance contrasts with Fed Chair Jerome Powell, with whom Trump has had disagreements over the direction of benchmark interest rates.

It is also expected that previously announced virtual asset policies will gain momentum. The U.S. Commodity Futures Trading Commission (CFTC) and the U.S. Securities and Exchange Commission (SEC), which share regulatory authority over virtual assets in the U.S., launched a virtual asset task force (TF) on the 21st (local time), led by Hester Peirce, a standing commissioner known as the 'Crypto Mom.' The TF plans to review the securities classification of virtual assets and work on regulatory improvements. Since virtual asset exchange-traded funds (ETFs) were rejected under the narrow interpretation of the SEC during former Chair Gary Gensler's tenure, registration requirements and procedures are expected to become clearer.

The virtual asset industry has expressed optimism. According to CoinMarketCap, a global virtual asset market site, Bitcoin was trading at $103,902.80 as of 9:11 a.m. on the 24th (Korean time), up 3.64% compared to a week earlier. On the inauguration day of Trump on the 20th, Bitcoin reached an all-time high of $109,114.88.

In addition, President Trump signed an executive order containing policies to make the United States the global capital of AI. He also signed an executive order to declassify confidential documents related to three historical figures who were assassinated: former President John F. Kennedy, his brother and former Attorney General Robert F. Kennedy, and civil rights activist Reverend Martin Luther King Jr. Furthermore, he signed pardons for 23 anti-abortion protesters.