Former chief operating officer of payment company PayPal (NASDAQ: PYPL) Sachs promised in an interview with Fox Business that the new executive order signed by Trump will finally clarify the regulation of the crypto market. A specially formed working group on digital assets will now be engaged in developing rules for the crypto market. Sachs believes that the industry needs transparent guidelines that crypto companies are ready to adhere to.
The Trump administration is willing to explore creating a government reserve in cryptocurrencies, but has not yet committed to creating one, the official said.
The working group intends to distinguish digital assets into different categories: securities, commodities and collectibles. The Trump administration is seeking to expand the use of stablecoins, hoping that this will increase demand for US Treasury bonds. This strategy could support the national debt and lower long-term interest rates, the “crypto-tsar” believes.
Sachs criticized former US President Joe Biden's approach, saying his administration had taken coercive measures against crypto companies. The lack of clear regulations for the industry only drives innovation overseas, Sachs said. He agreed with Trump that stablecoins are the best alternative to central bank digital currencies (CBDCs), which threaten people's financial freedom and independence.
Sachs called the TRUMP memecoin not a financial instrument but a collectible, similar to baseball cards. He sees no conflict of interest in the fact that this token was created and launched by the US president.
Recently, David Sachs stated that Bitcoin can protect the state budget from falling fiat currencies. In his opinion, if the authorities change their attitude towards Bitcoin, conservative large companies will enter the crypto market.