Trump Excludes Fed and FDIC from New Crypto Working Group
President Donald Trump has established a new crypto working group that does not include the Federal Reserve or the FDIC. This decision has ignited debate within the industry regarding financial oversight.
Key Developments
- Custodia Bank CEO Caitlin Long highlighted the exclusion of the Fed and FDIC, arguing they undermined her company's operations.
- The FDIC was criticized for pressuring banks to sever ties with cryptocurrency firms, linked to alleged initiatives like Operation Choke Point 2.0.
- Over 30 crypto founders reportedly lost banking access due to these pressures.
- Collapse of crypto-friendly banks in 2023 intensified accusations against federal regulators for restricting the crypto sector.
- Trump's exclusion of these agencies is viewed by some as a corrective measure for fostering innovation in crypto policy.
Executive Order Highlights
- Agencies, including the Treasury and SEC, must review existing crypto regulations within 30 days and provide recommendations within 180 days.
- The working group, chaired by David Sacks, includes high-level officials from key departments.
- The group will identify areas needing regulatory updates and establish guidelines to promote innovation while ensuring stability.
- A national digital asset stockpile and global adoption of dollar-backed stablecoins are also under consideration.
- There is an explicit ban on a Central Bank Digital Currency (CBDC), contrasting previous administration discussions about a digital dollar.