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Trump's Crypto Czar: New Era for Digital Assets

Coin WorldMonday, Jan 27, 2025 12:25 pm ET

1min read

President Donald Trump has signed a series of executive orders, including one focused on digital assets, which has sparked both excitement and controversy in the crypto world. The order, titled "Strengthening American Leadership in Digital Financial Technology," aims to support the responsible growth and use of digital assets, blockchain technology, and related technologies across all sectors of the economy.

The executive order establishes the President's Working Group on Digital Asset Markets, chaired by the newly appointed crypto & AI czar, David Sacks. The group will propose a federal regulatory framework for digital assets, including stablecoins, and consider creating a "national digital asset stockpile." This could potentially involve the government holding onto seized cryptocurrencies like bitcoin, ether, and even FTT tokens from collapsed exchanges like FTX.

In addition to the executive order, Trump has taken several other actions related to crypto. On his second day in office, he issued a pardon for Ross Ulbricht, the founder of the Silk Road marketplace, who was sentenced to life in prison for enabling users to buy goods, including drugs, with bitcoin. The Securities and Exchange Commission, now under Acting Chair Mark Uyeda, also scrapped its controversial SAB 121 guidance, which effectively shut banks out of crypto custody.

Before Trump took office, two memecoins, TRUMP and MELANIA, were launched, amassing billions of dollars in value. TRUMP soared to above $70 within two days, giving the coin a market capitalization of roughly $15 billion. MELANIA hit $2.2 billion within a few hours. About 80% of tokens are controlled by Trump-related entities. The launch of these memecoins has drawn new investors into the space but has also left many nursing substantial losses, according to NFT Evening.

The launch of TRUMP and MELANIA memecoins has triggered a surge in crypto interest, with Google searches for "crypto" hitting their highest level since Bitcoin's 2021 peak. On January 22, crypto trading apps dominated the U.S. Apple App Store, and Solana saw a record 9 million new wallet addresses, according to Copper.co.

However, the legal implications of these memecoins remain murky. Crypto lawyer Aaron Brogan explained that memecoins often exist in a "litigation vacuum" because they don't meet the Howey test to

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