Yesterday President Trump signed his first crypto-executive order.
I was reminded of Biden’s executive order on cryptography, which was published in March 2020.
We’ll take a stroll down the memory lane. Trump’s Report and Biden’s Plans:
CBDCs
Trump’s executive order prevents federal agencies from creating, issuing or marketing central bank digital currencies. Any ongoing CBDC projects must be stopped. “immediately terminated.”
CBDCs “threaten the stability of the financial system, individual privacy and the sovereignty of the United States,” The order of Trump reads:
Biden wasn’t as resolute. He and his administration took a little bit of middle ground. “merit” A US CBDC, but acknowledged “potential risks and downsides to consider.” Biden finally directed the agencies to produce a report about the future of payment and money systems.
This report was finally delivered, but it said very little, just like Biden’s executive order. Treasury’s recommendation “advancing” Work on a CBDC “prioritizing” Improvements to the cross-border payment system. Spoiler alert: a CBDC has never been developed.
You can find out more about this by clicking here. “protection”
Biden and Trump have very different opinions on digital assets when it comes to their security.
Biden’s order sought to protect consumers against the risk associated with engaging in crypto and investing. The vice president also raised national security issues, calling digital currencies a danger to financial stability as well as a tool that could be abused by illicit actors.
Trump’s EO includes both terms “protection,” His administration’s main concern is to maintain the dominance of US dollars and protect citizens from CBDCs.
The Working Group
Trump’s order created a Working Group on Digital Asset Markets to be headed by “crypto czar” David Sacks.
Members of this cabinet include the Chairs of SEC and CFTC as well the Attorney General and Secretaries of Treasury and Homeland Security.
Trump’s Working Group “shall evaluate the potential creation and maintenance of a national digital asset stockpile and propose criteria for establishing such a stockpile, potentially derived from cryptocurrencies lawfully seized by the federal government through its law enforcement efforts.”
According to a source I spoke with on Capitol Hill, it is an extended way of saying that “strategic bitcoin reserve is going to live in bureaucratic purgatory for a long time, maybe forever.”
Biden has not created a working group for crypto or a council of advisors. He did, however, ask the President’s Working Group on Financial Markets (PWGFM) to produce a report that outlines the risks associated with digital assets.
The report stated that cryptocurrency can be a danger to financial stability and recommended Congress to pass legislation granting rulemaking powers to the appropriate agencies. (For example, a bill on market structure).
Spoiler – This too was in limbo political for many years.
Time will reveal if Biden’s latest crypto executive orders inspires more than this one.
The industry’s excitement over Trump’s EO could be a sign of good things to come. You should never underestimate the influence that well-funded Capitol Hill lobbyists have.
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