Trump’s Crypto Revolution: A Sharp Pivot in Policy
Newly-elected U.S. President Donald Trump has signed an executive order to create an internal working group focused on cryptocurrency while banning the establishment of central bank digital currencies (CBDCs). This decision is part of a series of swift actions taken in the first three days of his second term.
“Trump is delivering on his promise to position the United States as the global leader in cryptocurrency,” the White House stated in an official release.
A Remarkable Shift in Stance
The move signals a significant change for Trump, who was previously a vocal critic of cryptocurrencies during his first term.
“The digital asset industry is integral to innovation, economic growth, and maintaining the United States’ leadership on the international stage,” the executive order declares.
Establishing a Framework for Digital Assets
The working group, led by David Sacks, Trump’s newly appointed artificial intelligence and crypto czar, will focus on developing a federal regulatory framework for digital assets, including stablecoins. It will also evaluate the creation of a national reserve of digital assets. The group’s members will include key figures such as the Treasury Secretary, Homeland Security Secretary, and leaders of the SEC and CFTC, among others.
Support from the Crypto Industry
Trump’s new stance has drawn strong financial backing from the cryptocurrency sector. Industry investors, corporations, and executives contributed significantly to Trump’s 2024 campaign, with some donations reaching tens of millions of dollars.
The order also revokes the Biden administration’s digital assets policies, which the White House criticized for “stifling innovation and undermining U.S. economic freedom and global leadership in digital finance.”
Introducing the $Trump and $Melania Meme-Coins
In a surprising addition to his crypto initiatives, President Trump and First Lady Melania Trump introduced two new meme-coins: $Trump and $Melania. While some have criticized the move, Trump promoted the coins as a celebration of “winning.”
Despite his promotion of crypto, Trump maintains that he “doesn’t know much” about it.
These meme-coins, like others in their category, are distinct from traditional cryptocurrencies. They are often created on blockchain networks such as Solana or Ethereum using accessible platforms like Pump.fun. The $Trump coin, for instance, is hosted on the Solana blockchain.
Meme-coins have gained popularity, with Dogecoin being one of the most famous examples. Frequently endorsed by Elon Musk, Trump’s new advisor, Dogecoin’s success exemplifies the market-shaping power of such figures, despite ongoing allegations of market manipulation against Musk.
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