David Sacks, appointed by President Donald Trump as the U.S. AI and crypto czar, stated that Bitcoin is the original and leading cryptocurrency. Its proven track record in security makes it an “excellent store of value.”
“First, you got bitcoin. It was the first digital currency. It’s the original, it’s the strongest one,” said Sacks, speaking during an interview with CNBC. “It’s been around for over a dozen years now. No one’s ever hacked it. No one’s ever cracked the security around it.”
In addition to Bitcoin, Sacks identified blockchain and stablecoins as two other important areas in terms of digital asset technology. He said that the blockchain platform that underpins Bitcoin could be used to develop a wide range of other applications and products.
Stablecoin Development
Trump’s crypto czar noted that while stablecoins are already in use, they are mostly operating outside of US regulations. He said that the new administration wants to bring this activity “onshore,” allowing the issuance of stablecoins in the U.S.
According to Sacks, stablecoins could increase the dollar’s dominance, fostering its use in international transactions. This could lead to increased demand for US Treasury bonds and help the U.S. government finance its debt.
On Tuesday, Senator Bill Hagerty introduced a new bill aimed at creating a regulatory framework for stablecoins. The proposed stablecoin legislation has garnered bipartisan support.
Sacks, in his CNBC interview, also reiterated the U.S. government’s high priority in assessing the feasibility of a national Bitcoin stockpile or a national digital asset stockpile. This came shortly after his press conference in Washington on the same day, where he outlined plans for advancing cryptocurrency regulations and their potential impact on the economy.
Following his inauguration, President Trump signed an executive order establishing a working group dedicated to developing a regulatory framework for digital assets. This group, led by David Sacks, will prioritize evaluating the creation of a national digital asset reserve.
The executive order also explicitly prohibits the federal government from pursuing the development of a Central Bank Digital Currency (CBDC).
Sacks said Tuesday that his group is in the very initial stages of formally examining the possibility of holding Bitcoin as part of its reserves, but it’s a high-priority item. He added that they are still waiting for key personnel to be confirmed before they can move to the implementation stage.
SEC Departs from Regulation by Enforcement Approach
Outside of Sacks’ crypto working group, developments are also taking place at the top securities agency. Since former SEC Chair Gary Gensler stepped down, the SEC has initiated numerous efforts to reshape its regulatory approach to the $3.5 trillion sector.
The SEC, under Acting Chairman Mark Uyeda, launched a Crypto Task Force aimed at developing a comprehensive regulatory framework for cryptocurrencies. This task force will be led by Commissioner Hester Peirce, known for her supportive stance towards innovation in the crypto space.
On Tuesday, Peirce unveiled the initiative’s webpage. The webpage serves as a platform that provides clarity on the regulatory framework for digital assets and invites public input from industry participants, investors, and academics.
The development is part of the SEC’s ongoing effort to untangle over a decade of regulatory confusion surrounding cryptocurrencies. The New York Times reported Tuesday that the SEC is scaling back its crypto enforcement unit which expanded to over 50 lawyers and staff under the previous SEC Chair’s tenure.
Trump’s pro-crypto policies and legislative efforts all signal that the regulatory environment for cryptocurrencies is undergoing a major transformation. However, these positive developments do not reflect on overall market sentiment.
CoinGecko data shows that Bitcoin dropped below $100,000 on Tuesday, now trading at around $97,000. Bitcoin and altcoins are struggling to recover from market reactions to geopolitical tensions and recent tariff announcements.
