What is Trump’s Executive Orders in Creations of Cryptocurrency Working Group?

What are the recent updates of the cryptocurrency working group?

• U.S. President Donald Trump signed an administrative order to prohibit the establishment and promotion of digital currency (CBDC) of the Central Bank.
• The order is given priority to the digital ecosystem driven by the private sector, and emphasizes the stabilization currency supported by the US dollar as a substitute for CBDC.
• The task of the new presidential working group is to formulate a comprehensive federal regulatory framework for digital assets.
• The United States has strengthened the positions of Bitcoin and cryptocurrencies, marking a major policy change.

U.S. President Donald Trump took a pioneering step in thorough reform of cryptocurrency supervision and fulfill his promise to quickly reshape the US cryptocurrency policy.

His administrative order not only established a special cryptocurrency working group, but also aims to promote innovation, ensure the definition of supervision, and position the United States as a global leader in the cryptocurrency field.

You are watching: What is Trump’s Executive Orders in Creations of Cryptocurrency Working Group?

What is cryptocurrency?

Cryptocurrencies are decentralized digital currencies protected by cryptography and operate on blockchain technology. Unlike traditional currency, it is not issued by the central institution, so it is not manipulated or controlled by the government.

Data source: finra.co.in

What are the main features of cryptocurrencies?

The following is the detailed features of cryptocurrencies:

feature	explain
Decentralization	Operating on the point -to -point network eliminates the needs of intermediaries such as banks.
transparency	Blockchain technology ensures that all transactions are recorded and can be visited publicly.
Safety	Advanced encrypted methods make cryptocurrencies highly safe, avoiding fraud and hacking attacks.
Global barrier -free	Transactions can be carried out anytime, anywhere, and are not restricted by geographical restrictions.
Supply limited	The supply of cryptocurrencies such as Bitcoin is limited, so it is not affected by inflation.

What policies and decisions did U.S. President Donald Trump formulate?

1. Establish a cryptocurrency working group

See more : Optical Illusion Brain Challenge: If you have 50/50 Vision Find the number 8 among B in 12 Seconds?

The newly established working group will include senior officials from the following departments:

• Ministry of Finance
• Securities and Exchange Commission (SEC)
• Commodity Futures Trading Commission (CFTC)
• Other major regulators

The task of the working group is:

• Formulate clear frameworks to monitor cryptocurrencies, stablecoins and other digital assets.
• Explore the method of balanced innovation and consumer protection.

This measure responds to the long -term demand of consistent and transparent supervision in the cryptocurrency industry.

2. Protect the bank service of cryptocurrency companies

• The administrative order banned banks from taking discrimination against cryptocurrency companies.
• It encourages financial institutions to provide services to cryptocurrency companies to solve complaints about restricted banking business to suppress market growth.

3. Forbidden central bank digital currency (CBDC)

• The Trump administration clearly opposed the CBDC that was worried that the government would interfere with excessive intervention and it may kill private cryptocurrencies such as Bitcoin and Ethereum.
• This strengthened the government’s commitment to support decentralized financial ecosystems.

Note: What is CBDC? Key details about CBDC Central Bank Digital Currency (CBDC) is a digital version of a national legal currency, issued and regulated by the Central Bank. Unlike cryptocurrencies, CBDC is centralized, secure, and is supported by the government, maintaining the same value as physical currency. They aim to achieve modernization of financial systems, provide fast and low -cost transactions, enhance financial inclusiveness, and better control monetary policy. As digital payment becomes mainstream, CBDC is regarded as the future of currency, which can improve economic efficiency and global competitiveness. Source: Bank of England

Abolishment of high -cost SEC accounting guidelines

• The US Securities and Exchange Commission has abolished the accounting standards that previously increased the cost of protecting cryptocarning assets, which is a major relief for the encryption industry.
• This change is expected to encourage digital assets widespread.

4. Exploration of national cryptocurrency reserves

• The government is considering using cryptocurrencies that have been legally detained by federal enforcement to create national digital asset reserves.
• The details are unclear, but experts believe that this can increase the US cryptocurrency reserves and strengthen financial security.

What will Trump’s decision on cryptocurrency groups will have a broader impact?

1. The impact on the development of CBDC

• CBDC is becoming more and more popular globally, and China, Brazil, South Korea, and the UAE have made significant progress.
• However, Trump’s decision stopped any efforts to create a US CBDC, which marked the huge differences between countries that support centralized digital currencies.

2. Improve the level of cryptocurrencies and stable currencies

Trump’s policy transformation has legalized Bitcoin, stablecoin and other digital assets, and guides the US digital economy towards decentralization solutions.

Although this supports innovation, it has also triggered the following problems:

• Decentralization: The principles of openness and independence of government supervision and cryptocurrencies.
• Ecosystem stability: With the expansion of the private sector solution to ensure stability.

3. The dominant position of the dollar

• By supporting stable coins supported by the US dollar, the United States aims to maintain the global dominance of the US dollar while promoting innovation.
• This strategy positions the private sector as the key participants in the future of digital assets.

After Trump made a decision on cryptocurrency groups, what is the global background?

Although the United States has adopted the private sector -driven method, some countries are embracing CBDC. For example:

• China has promoted the digital RMB pilot plan.
• Bahamas, Nigeria and Sweden have launched their respective CBDCs.

The decision to the United States may trigger the competitive dynamics of digital finance around the world, especially in countries that support centralized systems.

Trump’s vision: “Cryptocurrency President”

• During the campaign, Trump vowed to support the cryptocurrency industry. His government’s approach is in sharp contrast to the restricted policy of former President Joe Biden, including strict law enforcement actions for cryptocurrency exchanges.
• Trump’s support of cryptocurrencies has triggered optimism in the industry. For example, after the news was announced, Bitcoin soared to a record high of $ 109,071, reflecting that investors’ confidence in cryptocurrency -friendly governments continued to increase.

Industry influence and expert opinion

1. Potential benefits:

• Regulatory clarity: Standardized framework will attract more institutional investors and startups into the US cryptocurrency market.
• Innovation Promotion: Support for private cryptocurrencies can make the United States a global center for blockchain technology.
• Consumer protection: transparent regulations ensure the safety of investors and users.

2. Worries:

• Practice challenge: The establishment of a comprehensive framework that meets the needs of all interests requires a lot of coordination.
• Congress approval: Some measures, such as national cryptocurrency reserves, may face legislative obstacles.

Who appointed the new cryptocurrency and artificial intelligence Tsar of cryptocurrency groups?

To lead this transformation, President Trump appointed the famous venture capitalist and former PayPal executive David Sacks as the new cryptocurrency and artificial intelligence Tsar. Saxos will be the chairman of the cryptocurrency work group, emphasizing that the government will focus on promoting innovation while maintaining supervision.

See more : Observation Skills Test: Can you find the Odd Prawn in 10 Seconds?

Source: Reuters/Mike Segar

Comparison: Trump and Biden’s cryptocurrency policy

The following are the comparison of Trump and Biden in the field of cryptocurrency policy:

Policy field	Trump administration	Bayeng Government
Regulatory method	Professional business, cultivating innovation	Restricted, focusing on execution
CBDC position	Oppose, support private cryptocurrencies	Support government -controlled CBDC
Bank service	Protect the access of cryptocurrency companies	Without major actions
Cryptocurrency exchange	Promotion of major platforms	Law enforcement operations for key exchange

in conclusion

President Trump’s administrative order marks the critical moment of the American cryptocurrency industry. By promoting innovation, ensuring the clarity of supervision, and protecting banking services, this bold movement aims to make the United States a global leader in the cryptocurrency field. Although the challenge still exists, the government’s support for cryptocurrencies has stimulated the optimism of investors and industry leaders.

In the case of close attention around the world, one thing is clear: the United States is preparing to walk at the forefront of the cryptocurrency revolution.

Source: https://dinhtienhoang.edu.vn
Category: Optical Illusion