Trump Administration AI and Crypto Special Advisor David Sacks focused on stablecoin legislation and a potential crypto regulatory framework during a press conference on February 4. Sacks led the conference and was followed by a newly announced bicameral crypto working group, composed of Senate Banking Committee Chair Tim Scott (R-SC), House Financial Services Committee Chair French Hill (R-AR), House Committee on Agriculture Chair Glenn Thompson (R-PA), and Senate Committee on Agriculture Chair John Boozman (R-AR). Boozman explained the working group’s composition by acknowledging the possibility that digital asset regulations would involve both the Securities Exchange Commission and the Commodity Futures Trading Commission.
Sacks began the conference by listing the administration’s recent actions in the crypto sphere, including Trump’s recent crypto executive order (“Strengthening American Leadership in Digital Financial Technology”) and the SEC’s new Crypto Task Force under acting Chair Mark Uyeda.
Sacks remarked that numerous founders have told him “that the No. 1 thing they need from Washington is regulatory clarity” in the digital asset space, and that the previous status quo had seen “arbitrary prosecution.” Sacks also noted his desire to keep crypto innovations onshore, which could improve consumer protection and increase visibility for regulators.
Members of Congress echoed Sacks’ remarks. “We don’t want to be behind in financial technology and digital assets in the United States, but our innovators need clarity—they need to know what the rules of the road are,” Hill said, adding that the bicameral group was created for this reason—helping to make progress on clarity for a regulatory framework and to create a stablecoins bill that would help advance the United States as the reserve currency of the world.
Asked about last session’s FIT 21 bill, which ultimately failed in the Senate, Hill predicted “modest changes” and noted that FIT 21 enjoyed bipartisan support and reflected some Democratic views in the previous House. Scott added that he had established a digital assets subcommittee to work on market structure on the Senate side.
Thompson and Hill also highlighted the importance of education, as many new members of Congress may lack cryptocurrency knowledge. Sacks added that “crypto can be an esoteric subject and it is good to demystify it.”
Sacks also touted the value of stablecoin legislation, acknowledging Senator Bill Hagerty’s (R-TN) new “Guiding and Establishing National Innovation for U.S. Stablecoins” bill as an example of Congress coordinating with the new administration. He described the potential of American stablecoins to increase the usage of the dollar and to create trillions of dollars in demand for U.S. treasuries. Scott said his goal was to “be as aggressive as possible to achieve an objective of having bills through the Senate in 100 days.”
Scott and Hill also acknowledged both Democrats and Republicans support in the push for new legislation. Scott noted that he was “pleasantly surprised” at the speed of new legislation but acknowledged that finding places of disagreement would be key in getting legislation to Trump’s desk.
The group also spoke about anti-money laundering regulations, with Scott remarking that “we’re in a good place,” but the broader conversation “should not be about digital assets alone, but bad actors doing bad things by any means necessary.” The group remains sensitive to the law enforcement aspects of digital assets but does not view digital assets differently to any other means of payment transfers like cash, Hill added. Both Scott and Hill further acknowledged the importance of anti-money laundering laws and the Banking Secrecy Act.
The conference ended with reporters asking Sacks about Trump’s support for a potential Bitcoin reserve. Sacks said one of the first things his internal working group will do is evaluate the feasibility of a bitcoin reserve. He also said that a potential sovereign wealth fund is a separate concept, and the Department of Commerce would be involved in those talks.
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