Donald Trump is officially the 47th President of the United States, and his administration is already taking significant steps to chart a new course in governance, particularly in cryptocurrency and emerging technologies. Here’s a breakdown of the key developments in President Trump’s first week back in office:
Executive Actions and Announcements
President Trump wasted no time issuing a series of executive orders that set the tone for his administration’s approach to crypto regulation and innovation.
Key actions include:
- Formation of a Crypto Working Group: Chaired by AI and crypto czar David Sacks, this group is tasked with reviewing existing crypto regulations and recommending changes, as well as exploring the feasibility of a digital asset reserve.
- Ban on Central Bank Digital Currencies (CBDCs): The executive order broadly defines CBDCs and prohibits their use, signaling the administration’s preference for decentralized financial systems.
- Revocation of Biden-era Crypto Policies: This move nullifies former President Biden’s directives, which primarily involved commissioning reports on cryptocurrency impacts.
Additionally, Sacks was named co-chair of the President’s Council of Advisors on Science and Technology, further cementing his role in shaping the administration’s technology policies.
Key Appointments and Regulatory Shifts
Securities and Exchange Commission (SEC):
- Acting Chair Mark Uyeda has appointed Commissioner Hester Peirce to head a new crypto-focused task force.
- One of its first actions was rescinding Staff Accounting Bulletin 121, which imposed controversial accounting requirements on companies holding crypto for clients.
Commodity Futures Trading Commission (CFTC):
- Acting Chair Caroline Pham named Harry Jung as the lead for crypto industry engagement. A permanent chair nomination is expected soon.
Pardons and Controversies:
- President Trump pardoned Ross Ulbricht, the Silk Road founder, citing support from the Libertarian movement. The pardon has sparked debates about its implications for the justice system and crypto advocacy.
Congressional Developments
Senate Banking Committee:
- A new subcommittee on digital assets has been created, led by Sen. Cynthia Lummis (R-Wyo.). Notable members include Bernie Moreno (R-Ohio), Ruben Gallego (D-Ariz.), and Dave McCormick (R-Pa.).
- The committee has scheduled a hearing on crypto for February 5, with details to be announced.
IRS Rule Challenges:
- Sen. Ted Cruz (R-Texas) and Rep. Mike Carey (R-Ohio) introduced a resolution under the Congressional Review Act to overturn the IRS’s new rule requiring DeFi brokers to report user data. Critics argue the rule stifles innovation and places undue burdens on developers.
House Financial Services Committee:
- Scheduled two crypto hearings in February: one on debanking allegations (Feb. 6) and another on digital asset innovation (Feb. 11).
- The House Oversight Committee is investigating potential government-led debanking of crypto companies.
Other Developments
- The administration announced plans to rename the U.S. Digital Service to the Department of Government Efficiency, headed by Elon Musk. The move is symbolic of the administration’s push toward technological innovation and streamlined governance.
- Trump held talks with El Salvador President Nayib Bukele, though details on crypto discussions remain unclear.
Outlook for the Trump Administration’s Crypto Agenda
The first week of Trump’s presidency has set a bold tone, with a strong focus on deregulation, fostering innovation, and embracing digital assets. While some of these moves have drawn praise from crypto advocates, others, such as the pardon of Ross Ulbricht and the ban on CBDCs, remain contentious.
As the administration moves forward, the focus will likely remain on creating a crypto-friendly regulatory environment while navigating challenges from opposition and addressing concerns about privacy and innovation.
