Trump and the U.S. Congress take major action: Establish a Presidential Digital Currency Working Group, and the congressman who first proposed the establishment of a Bitcoin strategic reserve has been promoted

After Trump took office, he took action on cryptocurrency, signing an executive order aimed at promoting the development of the cryptocurrency industry. In addition, good news came from the U.S. Congress for the crypto circle: a congressman who first proposed the establishment of a Bitcoin strategic reserve in the U.S. was "promoted."

On Thursday, January 23rd, Eastern Time, the White House announced that President Trump signed an executive order titled "Strengthening America's Leadership in Digital Financial Technology." The order requires the establishment of a presidential "Working Group on Digital Asset Markets" within the National Economic Council, which advises the president.

The working group will be led by David Sacks, the White House's first AI and cryptocurrency special advisor, who is referred to as the "AI and cryptocurrency czar." Members of the working group will also include the U.S. Secretary of the Treasury, Attorney General, Secretary of Commerce, Chairman of the U.S. Securities and Exchange Commission (SEC), Chairman of the Commodity Futures Trading Commission (CFTC), and heads or designated personnel from other government departments and regulatory bodies.

The executive order also explicitly mentions that the Trump administration is considering whether to designate Bitcoin as a national reserve for the U.S. The order states,

The working group "should assess the feasibility of establishing and maintaining a national digital asset reserve and propose standards for such a reserve, which may consist of cryptocurrencies lawfully seized by the federal government through enforcement actions."

U.S. Senate Banking Committee Establishes New Digital Asset Committee Focused on Strategic Bitcoin Reserve Legislation

Earlier on Thursday, Tim Scott, Chairman of the U.S. Senate Banking Committee, appointed Wyoming Senator Cynthia Lummis as the chair of the newly established subcommittee on digital assets. Lummis issued a statement that this new committee dedicated to digital assets will focus on two areas:

1. Promoting responsible innovation and protecting consumers through bipartisan digital asset legislation, including legislation on market structure, stablecoins, and strategic Bitcoin reserves;
2. Conducting strict oversight of federal financial regulatory agencies to ensure these agencies comply with the law, including ensuring that Operation Chokepoint 2.0 does not occur again.

Operation Chokepoint 2.0 is reportedly an action taken by U.S. federal government agencies in collaboration to exclude cryptocurrency companies from the traditional banking system, and no formal documents have confirmed its existence to date.

In July of last year, Trump promised at the Bitcoin 2024 conference to designate Bitcoin as a strategic reserve asset for the U.S. Lummis, as Trump's ally in the Senate, first proposed the Strategic Bitcoin Reserve Act that month to establish a national Bitcoin strategic reserve for the U.S. The proposal requires selling part of the Federal Reserve's gold reserves without increasing the government deficit to purchase 1 million Bitcoins, establishing the "strategic Bitcoin reserve" proposed by Trump. Based on the price of Bitcoin at that time, it would cost approximately $90 billionIn a statement this Thursday, Lummis reiterated the need for legislation on Bitcoin as a strategic reserve. She stated:

"Digital assets represent the future, and if the United States wishes to maintain its leading position in global financial innovation, Congress must urgently pass bipartisan legislation to establish a comprehensive legal framework for digital assets and strengthen the dollar through a strategic Bitcoin reserve. ... I look forward to submitting bipartisan agreed legislation to President Trump this year to ensure our financial future."

The news of Lummis's appointment quickly ignited the cryptocurrency market. During Thursday's trading session, the price of Bitcoin (BTC) against the US dollar surged.

According to CoinMarketCap, the spot trading price of Bitcoin against the US dollar first fell below $101,300 during European trading hours, hitting a daily low, then accelerated its rebound after the US stock market opened, breaking above $106,800 towards the end of the morning session, rising over $5,000 and more than 5% from the daily low, approaching the intraday record high of over $109,000 set on Monday. However, the US stock market fell back towards the end of the session, and after the market closed, it dropped below $103,000, down over 1% in the last 24 hours.