Key points from the first digital asset launch event by the "Crypto Czar" in the United States: Promoting market structure and stablecoin legislation, currently evaluating Bitcoin reserves

Author: Weilin, PANews

In the early morning of February 5, Beijing time, David Sacks, the White House's head of artificial intelligence and cryptocurrency, held the first press conference on digital assets on Capitol Hill with several U.S. lawmakers, detailing the latest plans for the White House and Congress to develop digital assets in the United States.

Sacks expressed his eagerness to collaborate with congressional lawmakers to "create a golden age for digital assets." He revealed that they are evaluating the proposal for a Bitcoin reserve, although it is still in the early stages.

Regarding the Securities and Exchange Commission (SEC), reports indicate that the commission is downsizing the team responsible for cryptocurrency enforcement actions and reallocating some lawyers, marking a shift in the SEC's approach to cryptocurrency regulation. Meanwhile, the SEC has launched a website for its cryptocurrency special working group, led by Hester Peirce, which lists ten priority tasks focusing on the classification and regulation of crypto assets.

David Sacks: Looking Forward to "Creating a Golden Age for Digital Assets," Evaluating Bitcoin Reserve Proposal

Sacks emphasized at the press conference that he looks forward to working with Congress to jointly "create a golden age for digital assets." The press conference also invited Senate Banking Committee Chairman Tim Scott, Senate Agriculture Committee Chairman John Boozman, House Financial Services Committee Chairman French Hill, and House Agriculture Committee Chairman G.T. Thompson.

These committees are forming a bicameral committee to lead cryptocurrency regulation efforts, planning to base their work on the "FIT21" market structure legislation passed by the House Financial Services Committee last year, combined with the new stablecoin bill introduced by Senator Bill Hagerty on February 4, to push for a new round of legislation. Senate Banking Committee Chairman Tim Scott stated that he plans to "actively" promote these bills in the Senate within the first 100 days.

Sacks also confirmed that the Presidential Working Group on Digital Assets, established under a Trump executive order, will first examine the feasibility of a Bitcoin reserve, but he noted that this initiative is still in its early stages, as some members of the working group have yet to be confirmed.

Senator Bill Hagerty Introduces New Stablecoin Bill GENIUS

As mentioned above, on February 4, U.S. Senator Bill Hagerty introduced a bill aimed at creating a regulatory framework for stablecoins, bringing tokens like Tether and USDC under the Federal Reserve's regulatory rules.

The stablecoin bill aims to create "a safe and growth-friendly regulatory framework to unleash innovation potential" and advance President Trump's commitment to making the U.S. "the world capital of cryptocurrency."

Hagerty's "Guidance and Establishment of a National Innovation for U.S. Stablecoins (GENIUS) Act" has the support of Senators Tim Scott, Kirsten Gillibrand, and Cynthia Lummis.

Hagerty added on the X platform that he looks forward to working with Congressman French Hill and the House Financial Services Committee to "get it (the bill) to the president's desk for signing into law."

Hagerty's stablecoin bill is based on the discussion draft he submitted for former Congressman Patrick McHenry's "Clarity for Payment Stablecoins Act," which was submitted last October.

Key contents of the GENIUS Act include:

• Defining payment stablecoins as digital assets used for payments or settlements that are pegged to a fixed currency value;
• Establishing clear procedures for institutions seeking licenses to issue stablecoins;
• Implementing reserve requirements for stablecoin issuers and setting lightweight, tailored regulatory standards;
• Applying the Federal Reserve's regulatory framework for deposit institutions to issuers of stablecoins exceeding $10 billion, and the Office of the Comptroller of the Currency's framework for non-bank issuers;
• Allowing state-level regulation for issuers with a market capitalization below $10 billion, and providing exemption procedures for issuers exceeding that threshold to continue state-level regulation;
• Establishing regulatory, inspection, and enforcement mechanisms with clear limitations.

According to CoinGecko data, Tether (USDT) and Circle's USD Coin (USDC) are currently the only two stablecoins with a market capitalization exceeding $10 billion.

Stablecoin issuers will also be required to provide audited reserve reports monthly, with submission of false information potentially leading to criminal penalties.

SEC Launches Cryptocurrency Special Working Group Website, Adjusts Regulatory Strategy

On February 5, the New York Times reported that five informed sources revealed that the SEC has downsized a special group of over 50 lawyers and staff that was specifically responsible for cryptocurrency enforcement actions. This move is one of the first concrete measures taken by Trump and his administration to reduce regulation on cryptocurrencies and other digital assets. One of Trump's initial executive orders aimed to promote the development of cryptocurrencies and "eliminate excessive regulation of digital assets."

Informed sources stated that some lawyers from the cryptocurrency group are being reassigned to other departments within the SEC. A senior lawyer from the group has been moved out of the enforcement department.

Current SEC Acting Chairman Mark T. Uyeda has made a series of appointments while adjusting other senior positions at the SEC. One of the first things Uyeda did upon taking office was to establish a group to review how the SEC handles digital assets. This working group is led by SEC Commissioner Hester Peirce, a vocal supporter of cryptocurrency.

On February 4, the SEC launched the website page for its cryptocurrency special working group, listing ten priority tasks for the group, including addressing what types of cryptocurrencies are classified as securities rather than commodities, and creating a more "feasible" registration pathway by modifying the SEC's existing registration routes.

Other priorities include "clarifying whether crypto lending and staking processes are subject to securities laws" and determining which parts of the market fall outside the SEC's jurisdiction.

Currently, as the White House and U.S. Congress closely collaborate to promote the development of digital assets, the legislative process for cryptocurrency and stablecoin regulation in the U.S. is gradually accelerating. Although many proposals are still in the early stages, the framework surrounding Bitcoin reserves and stablecoins is gradually taking shape. With the gradual adjustments of the SEC's cryptocurrency special working group, it remains to be seen whether the U.S. can lead global crypto innovation, which is worth ongoing attention.