President Donald Trump announced his commitment to supporting legislative efforts aimed at creating a regulatory framework for stablecoins during a roundtable meeting with crypto executives at the White House on Friday.
This announcement follows Trump’s recent executive order establishing a US strategic Bitcoin reserve, alongside a separate stockpile of other digital assets, aimed at positioning the US as a leader in the digital currency space.
Stablecoin Regulation In Focus
“I also want to express my strong support for the efforts of lawmakers in Congress as they work on bills to provide regulatory certainty for dollar-backed stablecoins and the digital assets market,” Trump stated, acknowledging the work of congressional leaders in this evolving sector.
The meeting included prominent figures from the cryptocurrency landscape, such as Coinbase CEO Brian Armstrong, Bitcoin advocate Michael Saylor of Strategy, and billionaire twins Cameron and Tyler Winklevoss, founders of the crypto exchange Gemini.
Stablecoins, which are cryptocurrencies pegged to stable assets like the US dollar, serve as a crucial conduit for crypto transactions, enabling smoother exchanges and increased adoption in payment systems.
The push for federal regulatory oversight is seen by proponents as a means to enhance the legitimacy of stablecoins, potentially leading to broader acceptance within the financial ecosystem.
Treasury Secretary Scott Bessent, also in attendance, expressed his intention to collaborate with various agencies, including the Office of the Comptroller of the Currency and the Internal Revenue Service, to update previous guidance related to digital assets.
“We are going to keep the US the dominant reserve currency in the world, and we will use stablecoins to do that,” Bessent asserted, highlighting the strategic importance of stablecoins in maintaining the dollar’s supremacy.
$17B In Bitcoin As Part Of Newly Established Reserve
In conjunction with this support for stablecoin legislation, Trump’s executive order, signed late Thursday, mandates the creation of a Bitcoin reserve funded by cryptocurrencies forfeited during legal proceedings.
The order specifies that the reserve will focus on long-term asset preservation, while a separate stockpile will emphasize responsible stewardship of other digital assets. The US government has amassed approximately 400,000 Bitcoin over the past decade, primarily through seizures related to criminal and civil cases.
White House crypto czar David Sacks indicated that the government believes it still retains around half of this amount, although he noted the lack of a comprehensive audit to confirm these holdings.According to data from blockchain analytics firm Arkham, the US currently holds roughly $17.5 billion in Bitcoin and about $400 million in various other cryptocurrencies.
The executive order also empowers the Treasury and Commerce departments to devise “budget-neutral strategies” for acquiring additional Bitcoin without imposing extra costs on taxpayers. Notably, the government will not seek to acquire cryptocurrencies for its stockpile beyond those obtained through forfeiture.
Trump’s recent actions and promises signal a robust commitment to fostering a favorable environment for the cryptocurrency industry in the US. A previous executive order issued shortly after his inauguration mandated the establishment of a working group to develop policies for the digital asset sector.
At the time of writing, BTC has found support at the $86,000 level.
Featured image from DALL-E, chart from TradingView.com
