In an interview with CNBC, David Sacks, responsible for AI and cryptocurrencies in Trump's administration, shared plans for a national Bitcoin reserve and the development of a legal framework for cryptocurrencies.
Bitcoin Reserve and Crypto Legislation on the Horizon
Sacks confirmed that the administration is considering the establishment of a national Bitcoin reserve as an extension of support for cryptocurrencies during the election process. Collaborative work with U.S. Congress is in progress to eliminate regulatory uncertainties. The new regulatory framework aims to promote the growth of the U.S. cryptocurrency market. Additionally, the SEC is preparing to amend its policies by reducing its cryptocurrency enforcement unit.
New Plans for Stablecoins
Sacks noted that relocating stablecoin issuance to the U.S. is a priority. Many of these projects currently operate overseas, but the government aims to integrate them into the U.S. economy. Stablecoins could extend the global dominance of the U.S. dollar, creating trillions of dollars in new demand for U.S. Treasury bonds.
Market Response to Administration's Initiatives
Despite these developments, Bitcoin’s price continues to decline. The largest cryptocurrency fell over 3% in the past 24 hours to $96,330, largely due to China's response to Trump's tariff policies.
The proposed administration plans underscore the importance of creating a clear regulatory framework for cryptocurrencies in the U.S., as well as the potential integration of stablecoins into the national economy.
