TLDR
- U.S. Crypto and AI Czar David Sacks announced the formation of a congressional working group for cryptocurrency legislation, promising a “golden age in digital assets” and hinting at a strategic Bitcoin reserve.
- The working group will prioritize stablecoin regulation and market structure, with Senate Banking Committee Chairman Tim Scott aiming to pass bills within Trump’s first 100 days.
- Trump signed an executive order to develop a U.S. sovereign wealth fund, referencing Saudi Arabia’s $925 billion Public Investment Fund as a benchmark.
- Congressional hearings are scheduled to investigate claims that federal regulators under the Biden administration pressured banks to cut ties with crypto firms.
- The Trump administration’s pro-crypto stance marks a sharp departure from Biden’s more restrictive approach to digital assets.
The Trump administration has launched a series of initiatives aimed at reshaping America’s approach to digital assets and sovereign wealth management. David Sacks, recently appointed as U.S. Crypto and AI Czar, announced the creation of a congressional working group focused on cryptocurrency legislation during a press conference on Capitol Hill.
Sacks, who previously served as a PayPal executive and venture capitalist, made his first public appearance since his December appointment alongside key congressional figures, including Senate Banking Committee Chairman Tim Scott and House Financial Services Committee Chairman French Hill.
The newly formed bicameral working group will concentrate on developing legislation for stablecoins and market structure. This effort aligns with Senator Bill Hagerty’s proposed bill to establish U.S. oversight of stablecoin issuers, which would distribute regulatory responsibilities between state agencies and federal bodies like the Federal Reserve and the Office of the Comptroller of the Currency.
During the press conference, Sacks expressed his vision for the future of digital assets in the United States. “I look forward to working with each of you in creating a golden age in digital assets,” he stated, while also revealing that the group is exploring the possibility of a strategic Bitcoin reserve.
Chairman Tim Scott emphasized the urgency of these legislative efforts, stating his intention to pass the bills within the first 100 days of the Trump administration. This accelerated timeline reflects the administration’s priority to establish a comprehensive regulatory framework for digital assets.
In a separate but related development, President Trump signed an executive order on Monday to develop a U.S. sovereign wealth fund. During the signing ceremony, Trump referenced Saudi Arabia’s Public Investment Fund, valued at approximately $925 billion, as a model for the proposed American fund.
The president expressed confidence in the potential scale of the U.S. fund, stating, “I think in a short period of time, we’d have one of the biggest funds.” However, financial experts have raised questions about the feasibility of establishing such a fund given the current U.S. debt level of approximately $36 trillion.
Mark Crosby, Director of Monash University’s Bachelor of International Business Program, noted that successful sovereign wealth funds typically originate in countries with minimal debt. “For a country that has a lot of debt, like the United States, it doesn’t make that much sense,” he commented.
The administration’s crypto-friendly stance represents a clear shift from the previous administration’s policies. The Biden administration had taken a more restrictive approach to cryptocurrency regulation, leading to allegations of regulatory pressure on the industry.
These allegations will be examined in upcoming Congressional hearings, titled “Operation Choke Point 2.0: The Biden Administration’s Efforts to Put Crypto in the Crosshairs.” Coinbase’s Chief Legal Officer, Paul Grewal, is scheduled to testify regarding claims that federal regulators, including the FDIC, pressured banks to terminate relationships with crypto firms.
The working group’s formation includes collaboration between various congressional committees and regulatory bodies to ensure proper oversight while promoting innovation in the digital asset space.
Trump’s executive order also mentioned the possibility of involving TikTok in the sovereign wealth fund initiative, though specific details about this potential arrangement were not disclosed.
The administration’s approach aims to balance regulatory oversight with innovation support, marking a departure from previous policies that crypto industry participants viewed as restrictive.
Senate Banking Committee members have begun preliminary discussions on the proposed legislation, with initial drafts expected to circulate within the coming weeks.
The Treasury Department is expected to play a key role in coordinating between various regulatory agencies as these initiatives move forward.
Chairman French Hill emphasized the importance of maintaining U.S. competitiveness in the global digital asset market while ensuring adequate consumer protections.
