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The U.S. President's mantra is privately-owned and controlled digital dollar and not a Central Bank Digital Currency (CBDC).
The direction and the executive orders signed by Donald Trump last week cast a shadow on Bitcoin and other tokens.
Many of Trump's executive actions were preempted by the crypto industry.
However, some considered his executive orders fell short of lofty expectations that were driven by his campaign promises.
More importantly, much of Trump's campaign promises were already considered in the price action of top crypto tokens even before he took office on Monday last week.
A week into Trump 2.0, Bitcoin's price swings reflect a bit of disappointment for crypto traders.
Supporters of Bitcoin are disappointed because, contrary to widespread speculation, the decision did not mandate that the biggest cryptocurrency serve as the core of a national reserve.
On the campaign trail, Trump had supported the notion.
First, the OG token hit a record high on the day of Trump's inauguration of over $109,000 before slumping to stay barely above $101,000 in a week.
Still, Trump's actions are seen as crucial and an opening to fast-track friendly regulations.
Bitcoin ETFs continued to gain with net inflows of $517.67 million added on Friday, taking the total net inflows to nearly $40 billion since their inception, according to SoSoValue data.
The total net assets swelled to a touch over $123 billion as on Friday and the token's ETFs accounted for nearly 6% of its market cap.
Delayed Executive Action
After much anticipation, President Trump has taken an executive move that will help the digital-asset sector. This bodes well for the industry's future and could lead to more favorable regulations.
In addition to creating a working group of important agencies to back the president on cryptocurrency policy, the executive order signed on Thursday declares the cryptocurrency industry as "crucial" to the innovation, economic development, and global leadership of the United States.
The working group includes key regulatory bodies like the Treasury and Justice Departments, as well as the Securities and Exchange Commission and the Commodity Futures Trading Commission, among others.
“The digital asset industry plays a crucial role in innovation and economic development in the United States, as well as our Nation’s international leadership,” the executive order reads.
The crypto sector had expected Trump to move on his first day immediately after his inauguration; nevertheless, trade and energy matters were prioritised first.
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With an evaluation of the feasibility of creating a cryptocurrency reserve, among other recommendations, the working group is tasked with reporting back to the president in about six months with a legal framework and set of regulations for the crypto sector.
That came as a shock to Bitcoin supporters who had expected the president to sign an executive order to create a Bitcoin reserve.
Instead, the order states that the group will study the feasibility of a crypto reserve. The executive order addresses the establishment of technology and regulatory frameworks for cryptocurrency development in the US, and the creation of a working group to assess the feasibility of a national digital asset stockpile.
This stockpile could be “potentially derived from cryptocurrencies lawfully seized by the Federal Government through its law enforcement effort.”
Trump previously pledged that his administration would retain all Bitcoin holdings acquired by the government.
Therefore, the questions surrounding the reality of a Bitcoin reserve have returned to the forefront.
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