The White House crypto chief has called NFTs and meme tokens collectibles. Why it matters.
Tonight Donald Trump signed the first executive order on cryptocurrencies. It involves the creation of a special working group on digital assets, which will develop a legislative framework to regulate the coin sphere and study the issue of a national crypto reserve for America. In general, the attitude of the US authorities to the market is significantly improving: this is confirmed by the fresh comments of David Sachs.
Are cryptocurrencies securities or not?
The topic of the relationship of cryptocurrencies to a certain category of assets was commented on by David Sachs, responsible for policy in the field of artificial intelligence and cryptocurrencies. Previously, he was the chief operating officer of the payment platform PayPal, but after Trump’s appointment he will be responsible for the direction of AI and digital assets. It was he who was present when the US president signed the first executive order on crypto.
US President Donald Trump and David Sachs, who is responsible for crypto and AI policy
Sachs shared his commentary on crypto in a conversation with FOX Business reporters. Here’s his response to a direct question about whether cryptocurrencies are assets or currency, which Decrypt cites.
When it comes to digital assets, it could be anything. We have digital assets that are securities, digital assets in the form of commodities, and collectible digital assets like NFTs or memcoins. So you are touching on a broad area of innovation.
Such a comment is very important given the previous policy of the Securities Commission under Gary Gensler. Back then, the regulator constantly accused various cryptocurrency projects of distributing “unregistered securities” in the form of coins and tokens, and then sued them.
Thus, the creators of the companies could not know whether they would have to spend a lot of money to defend themselves in court, which scared many players away from the US market. While not all lawsuits ended in a victory for the SEC, entrepreneurs faced a great deal of uncertainty and fear of being sued. In addition, there was no clear mechanism for registration with the SEC.
Sachs also commented on Trump’s new meme token, which already promises to create certain difficulties for the politician. He continues.
I think the Trump coin is a collector’s item. It’s like a baseball card or a stamp. People buy it because they want to immortalise something.
Paul Atkins, the chairman of the Securities Commission, next
David separately noted that he was voicing his own position, not the opinion of the regulators’ leadership.
Although even such a statement is a huge step forward compared to the situation around crypto during Biden’s presidency. It shows that the new administration wants to bring digital assets out of the grey area and uncertainty that has been in place for several years.
The Biden administration did not explain the rules of the game to crypto companies and then they were held accountable. And more than anything, the industry wants regulatory clarity.
Sachs called stablecoins a “really interesting area” with the prospect of reinforcing the dollar’s dominance. Still, such tokens “make it possible to create a digital dollar that will be used by people all over the world,” David noted.
Lastly, the official commented on the topic of a national cryptocurrency reserve for the US, a mention of which is in Trump’s first executive order on cryptocurrencies. Sachs confirmed that everything is in the early stages, so there is further work to be done in this direction.
Yes, we are going to evaluate this idea. We still haven’t decided everything definitively, however we need to study what’s going on.
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What will happen to Trump’s meme token?
Despite Sachs’ comment, the US president’s meme token called TRUMP has become a cause for activism among Democrats. As we have already told you, some politicians propose to check the crypto-asset for possible influence on American politics.
Such a position was supported by Democratic US Senator Elizabeth Warren and Representative Jacob Okincloss. They published a letter to the US Office of Government Ethics, the Securities and Exchange Commission, the Treasury Department and the Commodity Futures Trading Commission.
The document noted that the crypto asset creates conflicts of interest, risks to defraud users, and even the prospect of other countries influencing what is happening in America.
US President Donald Trump
Their remarks are cited by The Block.
In his role as president, Mr Trump is responsible for appointing executives to enforce laws against cryptocurrency companies. This creates an inherent conflict of interest, as he will be in a position where he can both directly benefit from token sales and set policy to regulate these markets.
TRUMP and MELANIA pose serious risks both to President Trump’s ability to govern our country impartially and to the purchasers of these coins, who could fall victim to a fraud scheme from the Trump family.
Something like this looks like an attempt by Democrats to maintain their relevance after a resounding election defeat. Well, their approach to tackling digital assets is one of the worst policy decisions anyway, which among other things affected the outcome of the vote in November.
David Sachs' comment makes it hopeful that crypto will indeed cease to be a target for the US government. So far, Trump has already approved the creation of a working group on digital assets and wants to push for a new regulatory framework for the sphere. This looks like a great start for the new president's first week in office.
For other news, look for our crypto chat. We look forward to seeing you.
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