Trump Issues Executive Order To Shape Crypto's US Future, Gensler Steps Down, and Ross Ulbricht Receives Full Pardon

Takeaways

• Trump becomes 47th president to cheers from the crypto industry: President Donald Trump was officially sworn in as the 47th president of the US on Monday in a development widely celebrated by the crypto community. On Thursday, Trump issued an executive order setting forth a series of pro-crypto policy initiatives.
• Shakeup at the SEC: SEC chair Gary Gensler stepped down and Mark Uyeda, a crypto-friendly commissioner, will serve in the role until Trump-appointee Paul Atkins is confirmed. Meanwhile, Hester Peirce was appointed to run a task force that will shape regulatory policy for crypto assets.
• Donald Trump has launched his own cryptocurrency, $TRUMP: The price of the president's memecoin quickly surged to more than $70 per share before pulling back, settling at a market cap of some $7.3 billion by Thursday afternoon.
• Silk Road founder Ross Ulbricht receives pardon: Ulbricht had received a double life sentence for founding and operating Silk Road, a website on the dark web that served as a marketplace for some illicit activities.
• Michael Saylor’s MicroStrategy has added an additional 11,000 BTC to its holdings for $1.1 billion, marking 11 consecutive weeks of purchases: The company now holds 461,000 BTC, with an average purchase price of $63,610 per token.
• Utah has introduced legislation to allow up to 10% of public funds to be invested in crypto: The bill emphasizes security of public finances and protects individual rights to self-custody of digital assets.

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Trump Takes Office, Issues Executive Order Setting Crypto Agenda

Donald Trump was officially sworn in as the 47th president on Monday in Washington DC, ushering in a new era for cryptocurrency in the United States. During his campaign, Trump pledged to make the US the “crypto capital of the planet” and create a more friendly regulatory environment where cryptocurrencies and blockchain technology can thrive.

Trump on Thursday issued an executive order to implement a range of pro-crypto policies for crypto and blockchain companies in the US. Titled "Strengthening American Leadership in Digital Financial Technology," the executive order will create a working group headed by Trump crypto czar David Sacks that will "evaluate the potential creation and maintenance of a digital asset stockpile." The order also said it would protect software developers and others who lawfully build blockchain technology, as well as ban the creation of the much-debated US central bank digital currency.

The order also took aim at banks that have refused to custody a number of crypto industry stalwarts, saying it would promote "fair and open access to banking services for all-law abiding individual citizens and private-sector entities alike." Additionally, the order said it would protect "the sovereignty of the US dollar" by helping promote and develop the US stablecoin industry.

The price of bitcoin was slow to digest the news, with the price hovering around $103,000 Thursday afternoon following the announcement.

Gary Gensler Out, Mark Uyeda In as SEC Leadership Changes

Gary Gensler officially stepped down as SEC chair this week, coinciding with Donald Trump’s inauguration. President Trump has appointed Mark Uyeda, a Republican commissioner, as acting chair while awaiting US Senate confirmation of Paul Atkins as the permanent SEC head. Atkins, a former SEC commissioner, has strong ties to the crypto sector through his consulting business.

Uyeda’s appointment, despite being temporary, has been welcomed by the crypto industry, as he has consistently opposed stricter regulatory measures for the space. Notably, he criticized SEC policies like Staff Accounting Bulletin 121, which complicated banks' ability to hold digital assets for clients.

The end of Gensler’s leadership is also warmly welcomed by the industry, having been marked by contentious enforcement actions and his opposition to creating rulesets specific to digital assets. With the SEC's Republican commissioners now outnumbering Democrats 2-1, Uyeda’s tenure could mark an early moment in Trump’s promised support of crypto.

The SEC quickly signaled how the new regime will differ this week by appointing crypto-advocate Hester Peirce to a task force that is hoping to set up a clear framework for regulating digital assets.

Trump Unveils $TRUMP Memecoin

While cryptocurrency advocates attended a crypto ball last Friday in Washington DC, Trump introduced a new cryptocurrency called $TRUMP. The memecoin surged in popularity following its launch, pushing to around $70 per share before pulling back when Trump launched a $MELANIA memecoin to honor the first lady. Developed by CIC Digital LLC, an affiliate of the Trump Organization, the memecoin as of Thursday had a market cap of some $7.2 billion, with the bulk of holders comprised of retail holders who hold less than $100 worth.

The $TRUMP coin was launched in collaboration with Fight Fight Fight LLC, another Trump-linked token, with both companies retaining 80% of the tokens. The initial supply of 200 million tokens is planned to expand over the next three years, with another 800 million set for release.

Trump's latest moves follows a long list of celebrities who have joined the memecoin craze as they have become a common part of the digital asset ecosystem over the past few years. Trump's gains are unrealized profits, and he has no financial incentive to flood the market by unloading his current supply as it would hurt the price.

Silk Road Founder Receives Trump Pardon

In one of his initial acts, Trump granted a full pardon to Ross Ulbricht, the founder of online marketplace Silk Road. Ulbricht was serving life in prison for a range of charges coming from the sale of drugs and other illicit materials on the site, with customers often using bitcoin to facilitate sales.

But some libertarians and others within the crypto community have campaigned hard for Ulbricht’s release, arguing he shouldn’t be held responsible as a software developer for what consumers do on his website.

“(Ross Ulbricht) has been a libertarian political prisoner for more than a decade,” Libertarian National Committee chair Angela McArdle said in a statement. “I’m proud to say that saving his life has been one of our top priorities and that has finally paid off.” During his campaign, Trump promised to free Ulbricht if elected. And he wasted little time following through.

“The scum that worked to convict him were some of the same lunatics who were involved in the modern day weaponization of government against me,” Trump posted on Truth Social. "He was given two life sentences, plus 40 years. Ridiculous!”

MicroStrategy Increases Bitcoin Holdings to 461,000 BTC After $1.1 Billion Purchase

MicroStrategy has continued its aggressive bitcoin acquisition strategy. In the week ending January 19, the company acquired 11,000 bitcoin for $1.1 billion, raising its total holdings to 461,000 BTC. The recent purchase came at an average price of just under $101,200 per token, increasing the company’s average purchase price across all acquisitions to $63,610.

The company’s co-founder and Chairman, Michael Saylor, hinted at the announcement on social media platform X, posting cryptic messages such as "Things will be different tomorrow" and sharing photos with notable figures in US politics.

While MicroStrategy’s share price showed a modest decline in premarket trading at the start of the week, its most recent purchase marks the 11th consecutive week of bitcoin additions, showcasing the firm’s commitment to its heavily bitcoin-focused strategy. The approach exemplifies growing institutional support of Bitcoin and other cryptocurrencies.

Utah Proposes Bill To Invest Public Funds in Cryptocurrency

Legislators in Utah have proposed the "Blockchain and Digital Innovation Amendments" bill, which would enable the state treasurer to invest public funds in digital assets. The bill outlines comprehensive measures for aspects of crypto including staking, lending, and asset custody.

To qualify for investment, digital assets must maintain a market capitalization of at least $500 billion over a 12-month average or adhere to stringent stablecoin criteria. The bill also permits investment from accounts like the State Disaster Recovery Restricted Account and the Medicaid Growth Reduction and Budget Stabilization Account, with a cap of 10% allocation.

The proposal also includes robust security protocols, requiring cryptographic private keys to be stored in encrypted environments and secure data centers across multiple locations. If enacted, the legislation would take effect on May 7, positioning Utah as the eleventh US state to explore public crypto investments, joining efforts in other states including Texas and Oklahoma.

-The Gemini Team