President Donald Trump has signed an executive order aimed at solidifying the United States’ position as a global leader in cryptocurrency and artificial intelligence (AI).
The order prohibits central bank digital currencies (CBDCs) and establishes a working group to develop clear regulations for the crypto industry.
This comprehensive directive outlines a framework designed to foster innovation, eliminate regulatory uncertainty, and safeguard individual financial sovereignty.
Following the announcement, Bitcoin (BTC), the world’s largest cryptocurrency, surged by 3%, reaching the $105,000 mark in Friday’s trading.
One of the most notable aspects of the executive order is the proposal to create a national crypto reserve. This “digital asset stockpile” would consist of cryptocurrencies seized by federal law enforcement agencies.
While Trump has previously suggested the idea of a national Bitcoin reserve, the order does not prioritize BTC alone. Instead, it includes U.S.-developed altcoins, indicating a broader approach to digital asset adoption.
Reflection on the crypto market
The crypto industry welcomed the announcement, having urged the administration to provide clear support during Trump’s early days in office.
- As of 6:40 am Nigerian time, Bitcoin was trading at $104,971, up by 2.8%, after reaching an intraday high of $106,820. Ethereum also saw a surge, rising 5% to $3,376. The global cryptocurrency market capitalization increased by 2.65%, reaching $3.61 trillion.
- Other major altcoins followed suit, with Solana rising by 4%, XRP by 1%, Dogecoin by 1.3%, Cardano by 3.5%, and Chainlink by 5.2%. Additionally, Tron and Avalanche experienced gains.
- The volume of stablecoins now stands at $189.11 billion, accounting for 91.79% of the total 24-hour crypto market volume, according to data from CoinMarketCap.
In the past 24 hours, Bitcoin’s market capitalization surged to $2.079 trillion. Currently, Bitcoin’s dominance in the market is 57.49%, with BTC’s 24-hour trading volume rising by 73.5% to $100.98 billion.
What you should know
Also on Thursday, President Trump addressed the World Economic Forum in Davos, declaring his intention to make America “the world capital of AI and crypto.”
These comments marked the first direct mention of cryptocurrency by the President since his inauguration.
- He emphasized that an increase in domestic oil and gas production would secure U.S. manufacturing dominance and establish the country as the global leader in artificial intelligence and cryptocurrency.
- Industry insiders had grown concerned by the lack of a direct mention of crypto by the President since being sworn in on Monday.
- Bitcoin prices rose following the mention, further boosted by the news that Senator Cynthia Lummis was confirmed as chair of the Senate Banking Subcommittee on Digital Assets.
