The SEC is going digital

For a man who once said bitcoin was “based on thin air,” President Trump is turning out to love digital assets as much as he loves regular old assets.

We’re just one week into his second term in office, and he’s already unleashed a whole slew of policy actions boosting the crypto industry.

• Yesterday, Trump signed a new executive order to create a crypto working group. The group will be led by VC David Sacks, who has been appointed “AI and crypto czar” by Trump, and include the treasury secretary, attorney general, and head of the SEC. Their mission? Boost the crypto industry, and develop a regulatory framework to expand access to digital assets.
• The executive order also set the US on a path toward developing a national digital asset stockpile—a move industry bulls have been adamantly pushing for. However, the order didn’t establish a national bitcoin stockpile.
• The SEC announced the formation of a new “crypto task force” earlier this week. The task force will be led by SEC Commissioner Hester Pierce, who has been a longtime advocate of a more clear regulatory framework for crypto.
• The SEC also rolled back previous accounting guidance that, among other things, limited banks from accepting crypto funds.

Zooming out: Why did Trump pivot so hard that he launched his own token? Beyond the fact he’s always loved to put his name and face on things, crypto industry companies and executives accounted for nearly half of all corporate donations during the 2024 election cycle.

How to invest in crypto safely

While crypto bulls are more confident than ever that cryptocurrencies are going to keep hitting new highs, remember: Digital assets are way more volatile than stocks. That said, there are some smart ways to approach crypto investing.

Exchange-traded funds that track crypto are one way to get in on the crypto boom while still making sure the SEC is keeping an eye on your money. That’s partially why spot bitcoin ETFs, including the iShares Bitcoin Trust (IBIT), have become so popular. Given the SEC’s sudden embrace of all things digital, we’ll most likely soon get ETFs for other tokens, such as solana and XRP—which means more ways for investors to get in on the action.—LB