The crypto industry reacts to Trump’s digital assets executive order

• President Trump signed an executive order strengthening digital assets this week.
• The order will establish a working group to recommend regulatory and legislative proposals.
• The market is bullish on the development and even provides only a small update on the Crypto National Reserve.

The crypto industry finally received a long-awaited order from the Oval Office this week.

On Thursday, President Donald Trump signed Executive order To have a clear regulatory framework and pro-quarter legislation. Although the order was somewhat of an additional update on the administration’s support for the industry, industry insiders told Business Insider that it is a step in The right direction For a market eager for more robust government support.

“The executive order, as a whole, is mostly aspirational and symbolic. But the direction it points to is, I think, very bullish,” Zach Shapiro, head of policy at the Bitcoin Policy Institute, told Business Insider. It reaffirms, at the very least, that the administration wants to do what it can to help us with digital assets.

So what do you do? In essence, the order creates a working group to recommend legislative proposals within 180 days. That includes billing for a required regulatory structure for crypto startups to come to shore, Shapiro said. The group will advise stablecoin Legislation and prospect exploration Digital assets stock.

While Crypto investors are likely holding out hope for more aggressive and immediate policy action, BQ9 Founder and CEO Ireneia Karagiar noted that the valuation-led approach is a good sign, which shows a deeper understanding of the industry.

Investors still stand to gain something in the short term, as the order moves the crypto narrative away from “compliance by enforcement,” Karajewar told BI. This is a sign of the tough regulatory approach it has pushed Securities and Exchange Commission Under former president Gary Gensler, many blamed the heavy-handed approach for causing crypto companies to flee the United States.

“Although not explicitly mentioned in the Executive Order, we can expect that ‘developing a digital bill of rights’ – as further promised in the campaign – will be an important component of the set of recommendations in the final report,” Karagyuar added.

Other insiders were particularly keen to focus on stablecoins, or tokens linked to the fiat currency.

“This is incredibly important,” wrote James Brownlee, co-founder and CEO of Harbor. By putting government support behind these coins, it would make the US dollar a dominant force in this sector, and put pressure on other governments to follow suit.

Shapiro noted that a supportive StableCoin law in the US could do a lot to deepen Crypto’s integration into the traditional financial system. Tether Stablecoin became the most profitable individual company in the world by issuing these tokens, then using that money to buy the US Treasury. Wall Street firms would likely want access to it, he said.

While the order opens a new chapter for digital assets for us, there are some risks in what the order suggests.

“The crypto industry’s response to Trump is and will be completely risky,” said Victoria Heying, co-founder and COO of NPC Labs. “This means that, yes, the apps investors use to interact with the industry will likely feel more comfortable exposing investors to risk, both in the tokens they offer and the products they offer.”

However, the biggest piece of the puzzle for bullish investors — the creation of a national Bitcoin stock — has been light on concrete details. The muted response in the price of Bitcoin after the order was announced may be because Trump’s edict did not indicate that the government would be a buyer of Bitcoin as many crypto insiders had hoped. Instead, she said the working group will evaluate the possibility of a stockpile.“It likely derives from cryptocurrencies that have been legally seized by the federal government through law enforcement efforts.”

Without this, crypto professionals feared the market would have been overheating Risk of deep sellingInvestors have also become disillusioned with the lack of policy announcements.

Bitcoin rose about 1% on Friday, trading at $106,653.