President Trump issued an executive order on Thursday to support the cryptocurrency industry, calling for a new plan to regulate a business in which he has significant personal investments.
The order, which provided few specifics, stated that the Trump administration would establish a working group on digital assets to develop a comprehensive plan including “regulatory and legislative proposals.” The group would also explore the creation of a national cryptocurrency stockpile, according to the order – a government-controlled reserve of digital coins that the industry has been lobbying the new administration to establish for months.
“The digital asset industry plays a crucial role in innovation and economic development in the United States, as well as our nation’s international leadership,” the order stated. “It is therefore the policy of my administration to support the responsible growth and use of digital assets.”
Mr. Trump has a considerable personal stake in the success of the crypto industry. Last year, he and his sons helped launch a crypto company called World Liberty Financial, which is selling a new digital currency called WLFI. This month, he and his wife, Melania, each began selling memecoins, a type of cryptocurrency inspired by an online joke or celebrity mascot.
The ventures have drawn criticism from ethics experts who are concerned about potential conflicts of interest. In effect, Mr. Trump is trying to write the rules for business ventures from which he could personally profit. He has pledged to end the Biden administration’s legal crackdown on crypto companies and has made a series of personnel appointments at key federal agencies that appear designed to boost the crypto industry’s prospects.
In the executive order, Mr. Trump said his administration was committed to “protecting and promoting” the crypto industry. He promised “fair and open access to banking services,” a response to complaints by crypto companies that banks have denied them accounts. Shortly after the order was issued, the Securities and Exchange Commission reversed accounting guidance that had deterred banks from engaging in crypto.
