Trump Pledges Stablecoin Legislation as Crypto Stocks Surge

During a crypto summit held at the White House, former President Donald Trump expressed his commitment to signing stablecoin legislation before the August recess. This move is part of a broader effort to reshape the federal government's approach to cryptocurrencies. Trump emphasized his support for lawmakers' efforts to pass stablecoin bills and other legislation focused on market structure, aiming to maintain the U.S. dollar's dominance "long into the future."

The summit brought together key figures from the crypto industry, including executives from major companies and federal officials. Notable attendees included Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent, and representatives from the Securities and Exchange Commission and the Commodity Futures Trading Commission. Industry leaders such as Coinbase CEO Brian Armstrong and Kraken co-CEO Arjun Sethi were also present, along with lawmakers like House Majority Whip Tom Emmer.

Trump's remarks at the summit addressed the issue of "Operation Choke Point 2.0," a policy that has been criticized for making it difficult for crypto businesses to establish and maintain bank accounts. He called for an end to this policy, stating that the Biden administration had strong-armed banks into closing the accounts of crypto businesses, effectively blocking some money transfers to and from exchanges. Trump highlighted his personal experience with similar challenges, suggesting a deeper understanding of the industry's struggles.

Prior to the summit, Trump signed an executive order to create a strategic bitcoin reserve and a digital asset stockpile. The reserve will be funded by bitcoins seized by the Department of the Treasury during criminal or civil asset seizures. The order also establishes a U.S. Digital Asset Stockpile, which includes digital assets other than bitcoin forfeited in criminal or civil proceedings. The government will not purchase additional assets for the stockpile and may convert stockpile altcoins into long-term bitcoin holdings.

Trump's executive order has sparked debate within the crypto industry. Some leading figures, including the founders of the Gemini and Coinbase crypto exchanges, have expressed concerns about the inclusion of less decentralized and less used tokens like ADA and XRP in the reserve. Trump had previously mentioned these tokens on social media, drawing criticism from industry experts who prefer a reserve that holds more widely used and decentralized cryptocurrencies.

The summit marks a significant shift in the regulatory approach to cryptocurrencies compared to the Biden administration. Jennifer Schulp, Director of Financial