The whole crypto community was holding its breath, waiting for Donald Trump to come out with a crypto-related executive order. There was one specific promise everyone had waiting for since the Bitcoin conference in Nashville last year: a Strategic Bitcoin Reserve also called SBR.
Though, yes, some are saying the term is a little close to SBF, the infamous man behind the FTX disaster. But it wasn’t meant to be, at least for now.
According to a report from Reuters, Trump signed an order establishing a working group to investigate “the potential creation and maintenance of a national digital asset stockpile.”
Bitcoin Reserve Still Possible Due to Subcommittee
This was hardly the announcement most had hoped for. The initiative will also work on the specifics of what is needed for such a stockpile, which will likely contain crypto seized by the US Federal Government through law enforcement efforts.
So, any Bitcoin (or other digital asset) purchases are not immediately planned and an SBR could likely turn into an SCR or Strategic Crypto Reserve.
But that doesn’t mean a national stockpile consisting of Bitcoin is completely off the table. First, Trump being Trump, he may still be persuaded to change his mind, and if not there’s still Senator Cynthia Lummis who is set to lead the Digital Assets Subcommittee.
The Subcommittee’s stated goals are to establish an SBR, create legislation to protect consumers and avoid a repeat of Operation Chokepoint 2.0.
Executive Order Says No CBDC for The United States
So, there is still a lot of change happening in US politics regarding crypto, and it’s still early days in the Trump presidency.
The order Trump signed today also prohibits “the establishment, issuance, circulation, and use” of a central bank digital currency (CBDC) in the United States.
Read also: Morgan Stanley More Interested In Crypto as Regulatory Winds Shift
Trump’s working group will be led by “crypto czar” David Sacks and will include several federal departments and agencies, such as the treasury secretary, attorney general, and chair of the Securities and Exchange Commission and Commodity Futures Trading Commission.
Disclaimer
This article is provided for information only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
