Compiled by Wu on Blockchain
Source: Wall Street Watch
Fox Business invited America's 'Crypto Czar' David Sacks to discuss the latest executive order issued by Trump. The executive order signed by President Trump aims to promote innovation in the U.S. crypto industry and artificial intelligence while establishing a clear regulatory framework. The main content includes:
1. Crypto Industry Regulatory Reform: The Trump administration promises to improve the regulatory environment for the crypto industry and promote the U.S. to become the global crypto center. The executive order establishes a task force responsible for creating clear market structures and classifications for digital assets (such as securities, commodities, collectibles, etc.).
2. Stablecoins and Digital Dollar: Focus on innovations in stablecoins, promoting the international dominance of the dollar in the digital space while avoiding the development of Central Bank Digital Currency (CBDC) to prevent potential threats to personal freedoms.
3. Global Competition and Artificial Intelligence: The Trump administration plans to strengthen the development in the field of artificial intelligence, proposing that the U.S. become the global center for artificial intelligence, replacing the cumbersome regulations of the Biden administration.
4. Views on 'Trump Coin': Trump Coin is regarded as a digital collectible rather than a cryptocurrency and does not constitute a conflict of interest.
In summary, Trump's executive order aims to drive innovation in the crypto and AI industries through clear regulatory policies, ensuring the U.S. remains competitive in these cutting-edge fields and protects personal freedoms.
Appendix: In modern American politics, 'czar' typically refers to someone appointed by the government who is responsible for providing advice and coordinating policies in a specific field, similar to 'head', 'commissioner', or 'advisor'.
The full text is as follows:
Edward: First, thank you for joining us, David. President Trump mentioned on July 27 that he would prevent federal agencies from taking action against the crypto industry. Today, it seems he has fulfilled that promise, right?
David Sacks: Yes, that's right. President Trump stated during his campaign that he wants to be the 'first crypto president.' He mentioned in his speech in Nashville that he plans to change the regulatory environment of the crypto industry, pushing the U.S. to become the global center of the crypto industry. Today, he signed an executive order directing a task force to develop a new regulatory framework to encourage crypto innovation to stay in the U.S., rather than driving the industry overseas as seen during the Biden administration.
Edward: We will discuss this framework later. First, this executive order mentions suspending what President Trump considers 'overzealous enforcement actions and overreach'. What exactly does he mean?
David Sacks: In the past four years, the Biden administration has essentially prosecuted and suppressed crypto companies, leading many to move overseas. I've heard many founders complain that the Biden administration has never clearly told them what the rules are, yet they have been prosecuted. What the industry needs most is clarity in regulation; founders just want to know what the rules are, and they will comply. However, the Biden administration has never provided such clear guidance, which has caused all the innovation to flow overseas, almost causing the U.S. to lose this future technology. Now, President Trump has declared that America must become the global center for crypto, and these innovations should happen in the U.S.
Edward: A task force has now been established under your leadership; what areas are you mainly focusing on? What kind of guidelines do you expect to release?
David Sacks: There are several key areas we are focusing on. First is market structure. We need to clarify what constitutes a security, what is a commodity, and what is a digital asset or collectible. All of these need clear definitions.
Next is stablecoins. I think stablecoins are a very interesting area; they can help us further expand the global dominance of the dollar. We have the opportunity to create a digital dollar that can be used globally. The third area we will explore is whether to establish a national-level digital asset reserve. This issue is still in the evaluation phase, and a final decision has not yet been made.
Edward: Regarding digital asset reserves, you haven't decided whether to proceed, have you?
David Sacks: Yes, we are currently just evaluating this issue and have not decided whether to proceed.
Edward: So do you view crypto assets as assets or currency?
David Sacks: When it comes to digital assets, they can take many different forms. For instance, some digital assets are securities, some are commodities, and others are collectibles like NFTs or meme coins. Therefore, digital assets represent a very broad field of innovation. Because of this, we need a clear regulatory framework that defines each type. What founders need most are these clear rules; they need to know what they can do without facing unreasonable accusations due to ambiguous regulations.
Edward: How far behind do you think the U.S. is in the crypto field compared to other countries? How quickly can this executive order help the U.S. catch up?
David Sacks: We will catch up quickly. Although innovation has started to flow to Singapore and some European countries, I believe the U.S. will swiftly reverse this situation. Look at Silicon Valley and the entire tech industry; the U.S. is almost leading in all fields, with crypto being one of the only exceptions. Now, President Trump's executive order will undoubtedly change this situation.
Edward: Regarding 'Trump Coin', it was started before the president took office. Are you concerned this might lead to a conflict of interest?
David Sacks: I don't see any conflict. 'Trump Coin' is actually a collectible, like baseball cards or stamps. People buy it to commemorate certain events. So this is my personal view; I am not a regulator, but I think there is nothing wrong with it.
Edward: This executive order also prohibits the government from developing Central Bank Digital Currency (CBDC). Why was such a decision made?
David Sacks: Central Bank Digital Currency is a huge threat to freedom and privacy. CBDC means digital currency controlled by the Federal Reserve, which could gradually replace cash and record everyone's transactions. This would not only make every transaction transparent but could also lead to new legal and control measures that restrict people's freedom to consume. Everyone is worried this could become a '1984-style' regulatory model, and no one wants to go down that path. We believe we can create something similar to a digital dollar through stablecoins without going the CBDC route.
Edward: But the government's digital currency could compete with Bitcoin; is that one of the reasons you made this decision?
David Sacks: Any government can create stablecoins, but the dollar is already the global reserve currency, so I am not worried about competition in this area. I believe we should further expand the dollar's dominance in the digital space and push it into the global online market. This not only can bring huge demand for U.S. Treasury bonds but also helps support our finances while lowering long-term interest rates.
Edward: David, the last question. You are still the head of the AI field. The recently signed executive order positions the U.S. as the global center for artificial intelligence. What does this mean for the future?
David Sacks: As President Trump said today, we want the U.S. to be a global leader in both artificial intelligence and crypto. Both are critically important frontier technologies for the future. The Biden administration previously issued an executive order over a hundred pages long, which was overly cumbersome and faced strong backlash from the industry. President Trump promised to withdraw that executive order and replace it with a more efficient policy, and today he has fulfilled that promise.
Edward: Okay, it seems there will be many changes ahead. David Sacks, thank you for your insights.