Huge Developments in Bitcoin and Digital Assets with US Executive Order

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January 23, 2024 is a historical day for Bitcoin and digital assets. U.S. President Donald J. Trump has signed an executive order (EO) titled Strengthening American Leadership In Digital Financial Technology.

The main points of the EO include:

(i) protecting and promoting the ability of individual citizens and private-sector entities alike to access and use for lawful purposes open public blockchain networks without persecution, including the ability to develop and deploy software, to participate in mining and validating, to transact with other persons without unlawful censorship, and to maintain self-custody of digital assets;

(ii) promoting and protecting the sovereignty of the United States dollar, including through actions to promote the development and growth of lawful and legitimate dollar-backed stablecoins worldwide;

(iii) protecting and promoting fair and open access to banking services for all law-abiding individual citizens and private-sector entities alike;

(iv) providing regulatory clarity and certainty built on technology-neutral regulations, frameworks that account for emerging technologies, transparent decision making, and well-defined jurisdictional regulatory boundaries, all of which are essential to supporting a vibrant and inclusive digital economy and innovation in digital assets, permissionless blockchains, and distributed ledger technologies; and

(v) taking measures to protect Americans from the risks of Central Bank Digital Currencies (CBDCs), which threaten the stability of the financial system, individual privacy, and the sovereignty of the United States, including by prohibiting the establishment, issuance, circulation, and use of a CBDC within the jurisdiction of the United States.

The EO also includes:

  1. Revocation of Executive Order 14067 and Department of the Treasury Framework of July 7, 2022
  2. Establishment of the Presidents Working Group on Digital Asset Markets
  3. Prohibition of Central Bank Digital Currencies.

The EO also states, the 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.

Although coming short of establishing a Strategic Bitcoin Reserve, the EO addresses the creation of a National Digital Asset Stockpile, which would likely include Bitcoin.

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