by Jude Ayua  

 

US President Trump has signed a new executive order, “Strengthening American Leadership in Digital Financial Technology” (Digital FinTech order). Among other policies, the order establishes the “President’s Working Group on Digital Asset Markets” (Working Group) within the National Economic Council.

Composition of the Working Group

Chaired by the President’s Special Advisor for AI and Crypto, the Working Group comprises the following government agency officials or their designees: the Secretaries of the Treasury (Treasury), Commerce, and Homeland Security, the Attorney General, the Office of Management and Budget Director, the President’s Assistants for National Security Affairs, National Economic Policy, Science and Technology, the Homeland Security Advisor, the Chairs of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

The Chair may also invite the heads of other executive departments and agencies, or senior officials within the Office of the President, to attend meetings of the Working Group, based on their expertise and relevance to the Working Group.

Responsibilities of government agencies

The executive order mandates the heads of the Treasury, the Department of Justice, the SEC, and other relevant agencies in the Working Group to identify relevant regulations, guidance documents, and orders relating to digital assets. This process must be completed within 30 days of the order.

In addition, within 60 days of the date of the order, the agencies must submit recommendations to the Chair regarding any identified “regulation, guidance document, order, or other item” which requires rescission or modification. They may also recommend other items the Working Group could include in a regulation.

Read also: Trump’s Executive Order on Digital Assets: Policy Implications

Mandate of the Working Group

Within 180 days of the order, the Working Group shall submit a report to the Office of the President recommending regulatory and legislative proposals that will advance the policies proposed in the Digital FinTech order.  The focus of the report shall be on:

1. Proposing a Federal regulatory framework governing the issuance and operation of digital assets, including stablecoins, in the United States. Key provisions shall consider market structure, oversight, consumer protection, and risk management.
2. Evaluating the potential creation and maintenance of a national digital asset reserve and the criteria for its establishment. The reserve would potentially acquire cryptocurrencies the Federal Government has lawfully seized through its law enforcement efforts.

The order mandates the Chair to designate an Executive Director of the Working Group, who will be responsible for coordinating its day-to-day functions. In the execution of its mandate, the Working Group shall consult with the National Security Council on issues affecting national security.

Lastly, the order requires the Working Group to hold public hearings and receive expert opinions and advice from leaders in digital assets and digital markets.

Trump keeps his campaign promises

President Trump’s Digital FinTech order is proof that he is delivering on his campaign promises. Trump promised to end the government’s restrictions on crypto, set up a national crypto asset reserve comprising bitcoin and “America-first” coins, as well as make America the crypto capital of the world. 

The establishment of the Working Group with the mandate, among other things, to recommend the potential and criteria for a national digital asset reserve, and the appointment of pro-crypto agency Chairs including the SEC and CFTC, shows Trump’s commitment to fulfil his promises. 

Remarkably, Trump named David Sacks as his ‘AI and crypto czar,’ who will chair the Working Group.  

Read also: The New US SEC’s Crypto Task Force: Prospects for regulation  

 

Image credit: Anna Moneymaker/Getty Images  

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Jude Ayua is a policy analyst at CAB. A lawyer, Jude is an associate at Infusion Lawyers where he is a member of the Blockchain & Virtual Assets Group. He is also a member of the Policy & Regulations Committee of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN). Jude reports and writes on crypto policy and regulations. jude@infusionlawyers.com