Key Points
- Trump issued an executive order to develop crypto regulations and explore a national digital asset stockpile.
- Bitcoin traded around $106,000 after hitting a record $109,071 earlier in the week. The $TRUMP token dropped to $32.62.
- The order mandates crypto-friendly banking policies and bans a digital currency issued by the U.S. central bank.
- Analysts expect short-term market caution as regulatory details remain unclear. The working group has until July to submit its recommendations.
Bitcoin and the broader cryptocurrency market saw modest gains on Friday following President Donald Trump’s executive order to reshape crypto regulations and explore a U.S. digital asset stockpile. Despite the news, Bitcoin remained below its recent highs, trading around $106,000, down from its record of $109,071 earlier in the week.
Since Trump’s inauguration on Monday, Bitcoin has surged, breaking past the $100,000 milestone in anticipation of favorable regulatory changes. Trump’s campaign had promised a pro-crypto stance, pledging to roll back the Biden administration’s strict policies. In his latest move, Trump signed an executive order on Thursday recognizing the digital asset industry as “crucial” for U.S. innovation. The order established a working group tasked with drafting new crypto regulations and evaluating the feasibility of a national cryptocurrency reserve.
The order explores a crypto stockpile and requires banking services to be accessible to crypto firms. It bans the development of a U.S. central bank digital currency (CBDC), which could potentially compete with Bitcoin and other established cryptocurrencies. The Securities and Exchange Commission (SEC) also rolled back accounting guidelines that the industry previously argued were obstacles to mainstream adoption.
Despite these measures, the market reaction was mixed. While Bitcoin rose 2.8% to $106,048 and Ethereum climbed 4.1% to $3,383, some investors took profits amid uncertainty about how quickly Trump’s administration would implement these policies. Analysts suggested that while the executive order was promising, the absence of an immediate plan for a Bitcoin reserve left some market participants cautious.
Meanwhile, Trump-affiliated crypto ventures experienced volatility. The meme coin $TRUMP, which had peaked at $75 earlier in the week, fell to around $32.62. Critics, including Senator Elizabeth Warren, raised ethical concerns over tokens linked to Trump and First Lady Melania Trump, questioning potential conflicts of interest.
The working group Trump formed has until July to provide policy recommendations and assess the viability of a national crypto stockpile. Until then, analysts expect the market to remain watchful and reactive to further developments.
