Trump signed an order to create a cryptocurrency superpower from the USA. Maybe it won't be as bad as it sounds.
During the record signing of executive orders by the new American President Donald Trump, cryptocurrencies were also included. Already in the campaign, Trump called himself a "crypto president" and the current orders thus give validity to his words. However, only partially. While he set up a special body for cryptocurrencies, he did not establish the expected state reserves in Bitcoin, which differs greatly from other cryptocurrencies and the most famous virtual currency reacted to Trump's actions with considerable volatility.
What the signing of the executive order, which already promises in its title to make the USA a cryptocurrency superpower, will mean is somewhat unclear. The very frenzy of signing these documents is unprecedented in its intensity (no president has signed dozens of these orders during his inauguration), but on the other hand, it may not necessarily have a legislative impact.
The executive orders of the president have only very vague support in the American constitution and are not real legal orders. These can only arise from a vote of Congress, but a presidential order can foreshadow such laws and accelerate their application.
The fickle fate of presidential decrees
However, it may hit American courts that guard the local legislation. This happened quickly in the context of the executive case regarding the citizenship of children with one parent non-US citizen. Federal Judge John Coughenour in Seattle blocked Trump's order due to the 14th Amendment of the Constitution from 1868, which speaks of US citizenship for all born in the country regardless of the immigration status of parents. All presidential orders have a similarly volatile status.
One of the goals of the cryptocurrency regulations was to oppose a similar act by President Joe Biden, which, on the other hand, warned about cryptocurrencies as tools for laundering dirty money. The opposition to the Biden administration accompanied not only Trump's campaign, but also the entry into office and the issue of cryptocurrencies is no exception.
At the core of the command is the creation of a special working group that is to deal with cryptocurrencies. It is supposed to propose options for creating a national reserve formed by cryptocurrencies. Although he naturally mentioned Bitcoin in particular during the campaign, it was not discussed during the signing of the order.
Bitcoin is not yet being considered by the president
The comment on the signature of the executive order is key to its execution, but in the confusion of signed decrees, it did not get much attention, so the currently signed order regarding cryptocurrencies leaves a number of questions in the air. This was reflected in the considerable volatility of Bitcoin, which relatively wildly fell and rose within hours and as a result moved away from its maximum of 109 000 dollars.
"The signature traditionally became an event of "buy the rumour, sell the news". I believe that once a certain level of skepticism expires, even Bitcoin maximalists will acknowledge that the order is a boon for the cryptocurrency world. We'll see how much of it can be fulfilled and whether it will also face any lawsuits. And then it depends on how much of the potential output can really be converted into reality,"
The investor Kamil Pošvic commented on his view on cryptocurrencies for Kryptomagazin and maintains optimism towards Bitcoin, which was reflected in the increase in the value of cryptocurrency with the election of Trump.
Cryptocurrency investors contributed tens of million dollars to Trump's campaign and this could be a reason why we haven't heard about the creation of an official US reserve in Bitcoins yet. The most traditional virtual currency differs from other cryptocurrencies according to experts because it strictly adheres to its mathematical nature.
Other virtual currencies are far more subject to speculation and their value could be significantly increased in the short term by the President's attention transformed into official documents. On this, speculators can make a lot of money behind the scenes, but less informed investors can lose money. We've already seen this in terms of the rise and fall of the price of Trump's meme coins.
Sources: author's article, Reuters, ČTK, kryptomagazin.cz, seznamzpravy.cz, e15.cz
