President Donald Trump has signed an executive order to establish a digital asset working group responsible for creating regulations and evaluating a federal cryptocurrency reserve in the US. The order aims to legitimize the asset class and respond to calls for clearer regulations from both traditional financial and crypto platforms. The order fulfills Trump's promise to create a strategic national Bitcoin reserve and comes as his family's personal financial interests in the crypto industry deepen. The US Securities and Exchange Commission (SEC) recently revoked guidelines that made it more expensive for firms to hold digital assets, and Commissioner Hester Peirce will lead a crypto task force to develop reasonable regulatory paths. Stacks, a Layer-2 scaling solution for Bitcoin, is uniquely positioned as the first SEC-regulated token and aims to leverage regulatory compliance. It aims to enhance Bitcoin's utility by bringing smart contracts and decentralized applications and employs a Proof-of-Transfer mechanism that requires less energy than traditional mining. The Stacks ecosystem has already achieved success in its first year by facilitating the creation of DeFi platforms and supporting diverse assets. The launch of Grayscale Stacks Trust allows institutions to easily purchase the STX token. The executive order also directs the working group to assess the potential for a strategic reserve of seized crypto assets, which currently amount to approximately 200,000 tokens with a market value of about $21 billion. Republican Senator Cynthia Lummis has introduced a bill to create a Bitcoin reserve run by the US Treasury, aiming to purchase 200,000 bitcoins per year for five years until the supply reaches a million.



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