David Sacks, President Donald Trump’s new “crypto czar,” is taking a different approach to digital assets. Over the past few weeks, Sacks has been very clear on two main priorities: a U.S. Bitcoin reserve and stablecoin legislation.
Sacks’ public appearances are a big shift from the previous administration’s digital asset stance.
Under President Joe Biden the industry was hit with what many in the community saw as regulatory persecution, dubbing it “Operation Chokepoint 2.0,” with companies like Coinbase, Kraken and Binance facing legal battles and unclear regulations.
Sacks has gone on record to say “The war on crypto is over”. He’s criticized past enforcement actions by agencies like the Securities and Exchange Commission (SEC) saying unclear regulations forced digital asset innovation offshore.
Now the Trump administration is focused on clarity. Sacks told CNBC:
“They are very committed to moving legislation through the House and the Senate this year in order to provide that clear regulatory framework that the digital assets ecosystem needs to sustain innovation in the United States.”
One of the topics Sacks has talked about the most is a national bitcoin reserve. President Trump has asked his working group to look into whether the US government should hold bitcoin as part of its financial strategy.
“The feasibility of a bitcoin reserve would be one of the first things to look at as part of the internal working group at the administration,” Sacks said. But he was quick to point out that no decision has been made yet.
This is a big change in US financial policy.
Traditionally the Federal Reserve has relied on gold reserves and treasury bonds to stabilize the economy. But with bitcoin becoming a store of value some officials see an opportunity to hedge against inflation and economic uncertainty.
Sacks made it clear that the President instructed them to evaluate a “bitcoin” reserve specifically, which is separate from a broader “digital asset stockpile” Trump initially considered.
So for now, the working group seems to be focused on Bitcoin, not a mix of “cryptocurrencies.”
Alongside Bitcoin, the administration is prioritizing stablecoin regulation.
Senator Bill Hagerty has introduced a bill to establish clear rules for stablecoin issuers so stablecoins are backed 1:1 with reserves like US dollars or treasury securities.
Sacks agrees and says stablecoins could help maintain US dollar dominance. A clear stablecoin regulatory framework could create massive dollar demand and lower long-term interest rates.
The bill requires stablecoin issuers to meet strict requirements including licensing, reserve audits and anti-money laundering compliance. It also prevents issuers from using customer deposits for lending or other financial activities, so users are safer.
Besides legislative efforts, the SEC is getting a new approach under new management. Commissioner Hester Peirce, now in charge of the Crypto Task Force, admitted the agency’s past approach was a mess.
Peirce said the agency will create a regulatory framework that balances investor protection with industry innovation. The SEC will now define which digital assets are securities, create a clear process for token issuers and make sure compliance rules don’t kill innovation.
For now, the fate of a national bitcoin reserve is unknown, but one thing is clear: the Trump administration is determined to asses the possibilities, and bitcoin is closer than ever to becoming a key part of the U.S. economic plan, positioning the country as the leader in digital finance.
