A regulatory framework for crypto has been proposed by Republican lawmakers and Venture capitalist David Sacks, the newly appointed White House AI and crypto czar. Sacks stated that getting legislation through Congress is possible in the next six months.
The focus on stablecoins, a type of cryptocurrency pegged to a real-world asset like the US dollar, is expected to be key. Stablecoin usage has gained popularity overseas but is now being promoted for U.S.-based issuance to reinforce the dollar’s dominance through digital finance.
Sacks’ task force aims to evaluate the feasibility of a Bitcoin reserve, an idea suggested by President Donald Trump during his campaign. The SEC has also shifted its approach to crypto regulation under new leadership, announcing it will meet with anyone interested in discussing crypto and exploring clearer regulations for the industry.
The group’s priorities include clarifying which crypto assets fall under securities laws, crafting regulatory approval pathways for token issuers, and ensuring compliance measures don’t stifle innovation. The SEC is actively soliciting public input and will examine various aspects of the crypto industry, including lending, staking, exchange-traded products, and cross-border regulations.
Sacks’ close ties to the White House and Elon Musk have positioned him as a key figure in the administration’s digital currency plans. Despite initially being a Trump critic, Sacks has since become a supporter, hosting a fundraiser for Trump’s presidential campaign.
Source: https://www.cnbc.com/2025/02/04/trump-crypto-czar-david-sacks-says-priority-is-stablecoin-legislation.html