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Trump will enact 5 cryptocurrency changes as quickly as possible via executive order amid red tape

New Bloomberg a report It indicates that Trump intends to prioritize cryptocurrencies through an executive order. Details circulating among industry participants suggest that this action could impact agencies and shape the implementation process across several digital asset sectors.

However, executive orders are limited due to the checks and balances found in the US Constitution. Trump is said to be seeking to implement the following policies through executive order:

  • Set encryption as a national priority.
  • Create a cryptocurrency advisory board.
  • Directing agencies to review digital asset policies.
  • Pausing or halting litigation against cryptocurrency companies.
  • Create a national bitcoin stock.

What does that mean, and how much can it change through executive order alone?

According to anonymous Bloomberg sources, the draft order is expected to declare cryptocurrencies a major initiative and establish an advisory board. Such a council would encourage interagency cooperation, although it would primarily issue recommendations rather than enact binding regulations.

Presidential directives often rely on the Federal Advisory Committee Act, which provides transparency and public accountability when forming new advisory groups. Such a move typically faces fewer legal hurdles, allowing the executive branch to foster a broader focus on political matters related to cryptocurrencies without waiting for new legislation.

Another item under discussion is a directive for agencies to review regulations and enforcement strategies related to digital assets. These internal audits and policy reviews fall comfortably within typical executive authority, especially when they involve producing reports or recommendations.

Previous administrations have used similar strategies to highlight emerging issues and coordinate a rapid response. Market participants expect the formal review to lead to a more consistent approach across the Treasury Department, the Department of Justice, and other entities that oversee cryptocurrencies.

Some policies may be difficult to implement via EO

However, proposals to halt lawsuits involving cryptocurrency companies indicate a more controversial approach. Enforcement actions against industry players, including those by the SEC and CFTC, derive from mandates that give these agencies a measure of independence.

Direct intervention may conflict with legal obligations and established prosecutorial standards, raising concerns about judicial interference. Executive influence over the Justice Department already exists, but instructing it to suspend ongoing cases would generate widespread legal and political opposition.

The possibility of expanding the Bitcoin stock held by the government is still under consideration but is likely to be faced Congressional audit. Existing laws typically direct the disposition or auction of seized assets, with the funds directed to government accounts or used for law enforcement activities.

Accumulating a long-term reserve of Bitcoin raises questions about the power of the wallet because budgets and appropriations fall within the jurisdiction of Congress. Proponents view such a stock as a Strategic movePointing out that the government already owns about $20 billion worth of Bitcoin that was seized through various investigations. Skeptics argue that any effort to formalize these properties would require explicit legal approval, given constitutional limits on executive spending.

tldr;

Specific actions — such as designating cryptocurrencies as a priority, forming advisory bodies, and requesting agency reviews — fall within standard executive powers. More sweeping endeavors, including halting enforcement through independent agencies or creating a permanent bitcoin reserve, lean toward matters that require congressional cooperation. These differences could shape the scope of the next regime and determine whether its impact extends beyond advisory measures to substantive regulatory change.

initiative Energy feasibility EO
Set encryption as a national priority Obviously it is possible
Create a cryptocurrency advisory board Generally possible
Directing agencies to review digital asset policies Very possible
Pausing or halting litigation against cryptocurrency companies Legally problematic
Create a national Bitcoin reserve stock Requires congressional approval

Although the final text has not yet been released, stakeholders are preparing for guidelines that may redefine how the federal government interacts with the cryptocurrency industry as early as Monday, January 20.

Implementation will depend on the agency’s existing frameworks and any legal restrictions governing specific areas of implementation or treasury operations. The extent of the regime’s scope remains uncertain, but clarifying the administration’s position on digital assets may stimulate closer coordination between regulators and market participants.

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2025-01-17 14:45:00

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