Trump’s Executive Order Aligns Stablecoins With Maintenance of Dollar Supremacy
President Donald Trump’s executive order on digital assets issued Thursday (Jan. 23) will reportedly boost stablecoins and issuers like Tether Holdings and Circle Internet Financial.
Trump’s order aligned stablecoins with the government’s efforts to maintain the global supremacy of the dollar, Bloomberg reported Friday (Jan. 24).
The executive order aims in part to protect the dollar, “including through actions to promote the development and growth of lawful and legitimate dollar-backed stablecoins worldwide,” according to the report.
The order also blocked a potential competitor to stablecoins by barring development of a central bank digital currency (CBDC), the report said.
Stablecoins issues by Tether and Circle — USDT and USDC, respectively — account for almost 90% of stablecoin value, per the report.
“The [executive order] makes clear that the U.S. will also be a leader in rule-based free market competition for the movement of money,” Circle Chief Strategy Officer and Head of Global Policy Dante Disparte told Bloomberg.
Tether didn’t comment on the potential impact of the executive order but said in the report: “We are hopeful that new regulations will provide much-needed clarity for corporations, institutions and FinTech companies looking to enter the digital assets space.”
Stablecoins are becoming significant dollar proxies as they are being used for payments and money transfers with increasing frequency, according to the report.
White House AI and crypto czar David Sacks said Thursday, per the report, that stablecoins offer “the opportunity to extend the dollar’s dominance internationally.”
Trump’s executive order also established a Presidential Working Group on Digital Assets Markets and tasked it with developing a federal regulatory framework governing digital assets as well as considering the creation of a “strategic national digital assets stockpile.”
The order touched on many of the crypto sector’s wants, needs and concerns, PYMNTS reported Friday.
Its explicit prohibition on developing a U.S. CBDC could spur creativity in private-sectorstablecoin development, and the promise of regulatory clarity could allow stablecoin issuers to focus on scaling their infrastructure and integrating their offerings with existing payment networks.
It was reported Jan. 13 that stablecoins were already being increasingly heralded as a bridge between traditional finance and the cryptocurrency world.
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