Donald Trump has been officially inaugurated as the 47th President of the United States, bringing some significant changes to the country’s governance compared to the previous administration.
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The Overview
On his first day in office, President Trump signed several executive orders, some of which related to cryptocurrency. His administration has been swift in taking action, along with the wider Republican Party.
Importance of Initial Actions
The initial moves by these government bodies and Congress are a hint of what’s in store as they start to shape their agenda for this year.
A Closer Look
We’ll delve deeper into some of these developments later, but for now, let’s highlight a few:
Trump’s Administration
President Trump signed an eagerly awaited executive order on cryptocurrencies, which includes directives to:
- Form a task force consisting of Cabinet members, White House advisors, and others to review cryptocurrency regulations and suggest potential changes. David Sacks, an AI and cryptocurrency expert, will chair this group.
- Assign the task force to assess a digital asset reserve.
- Prohibit any central bank digital currency under a somewhat broad definition.
- Overturn former President Biden’s executive order on cryptocurrency, which mostly directed his departments to develop reports on various facets of digital currency and consumer protections.
Trump also disclosed that Sacks would co-chair the President’s Council of Advisors on Science and Technology.
The U.S. Securities and Exchange Commission, currently under Acting Chair Mark Uyeda, established a crypto-focused task force led by Commissioner Hester Peirce. Trump had earlier nominated Paul Atkins to be the agency’s chair, pending Senate confirmation.
One of the SEC’s initial steps was to cancel Staff Accounting Bulletin 121, a directive opposed by the crypto industry as it made it harder for banks to offer certain cryptocurrency services.
The Commodity Futures Trading Commission, now under Acting Chair Caroline Pham, appointed CFTC Senior Policy Advisor Harry Jung as the lead for crypto industry engagement. A nominee for permanent chair has not been announced by Trump yet.
Trump granted a pardon to Ross Ulbricht, the creator of Silk Road, citing support from the Libertarian Movement and in honor of Ulbricht’s mother. Ulbricht was previously convicted of multiple charges, including narcotics distribution, and was serving a life sentence.
Trump revealed plans to rebrand the existing U.S. Digital Service as the Department of Government Efficiency, overseen by Elon Musk. Initially, the department’s website featured the Dogecoin logo. Companies are now applying to launch dogecoin exchange-traded funds.
Trump had a conversation with El Salvador’s President Nayib Bukele after signing his crypto executive order, although no mention of digital currencies was made in the official summary of the call.
The Senate
The Senate Banking Committee confirmed the establishment of a subcommittee dedicated to digital assets, chaired by Sen. Cynthia Lummis (R-Wyo.). The subcommittee includes new members Bernie Moreno (R-Ohio), Ruben Gallego (D-Ariz.), and Dave McCormick (R-Pa.), among others.
A hearing is scheduled by the Banking Committee on Feb. 5, with the specific time and witnesses yet to be announced.
Sen. Ted Cruz (R-Texas) proposed a Congressional Review Act resolution to overturn the IRS’ recent crypto broker rule. The Blockchain Association has already filed a lawsuit against the rule, arguing that it imposes unlawful compliance burdens on software developers.
Sen. Elizabeth Warren (D-Mass.), the leading Democrat on the Senate Banking Committee, requested the U.S. Office of Government Ethics to investigate the TRUMP token, co-signing an open letter with Massachusetts Representative Jake Auchincloss.
House of Representatives
The House Oversight Committee announced an investigation into whether banks unfairly targeted crypto companies at the government’s request.
The House Financial Services Committee has scheduled two hearings on digital assets next month. The first will focus on the aforementioned debanking, while the second is titled “A Golden Age of Digital Assets: Charting a Path Forward.”
The leading Democrat on the House Oversight Committee, Rep. Gerry Connelly, asked the panel’s leading Republican, Rep. James Comer, to investigate Trump’s issuance of the TRUMP coin and his ties to World Liberty Financial.
Tuesday’s Developments:
- The 10th Circuit Court of Appeals heard arguments in Custodia Bank’s ongoing case against the Federal Reserve at 16:00 UTC.
- Security researchers discovered that they could track and control certain internet-connected Subaru cars. This vulnerability has now been patched.
- Walgreens spent $200 million replacing refrigerator doors with screens from a vendor who is now in a legal dispute with the pharmacy chain.
For any comments, suggestions for next week’s discussion, or any other feedback, feel free to email me at [email protected] or find me on Bluesky @nikhileshde.bsky.social.
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