President-elect Donald Trump is reportedly preparing to sign an executive order that would make cryptocurrency a national priority, potentially on his first day back in office, January 20. According to a Bloomberg report on January 17, citing sources familiar with the matter, the order would direct regulatory agencies to collaborate with the crypto industry and could establish a council to represent and advocate for its interests.
Details of the Proposed Executive Order
The executive order would aim to streamline regulatory processes and align government agencies with the crypto industry’s needs. Sources suggest the initiative could pave the way for a “crypto council,” which would provide industry representatives a platform to influence policy development. However, the plan remains fluid and could be modified before it is finalized.
This move aligns with Trump’s campaign rhetoric, where he vowed to transform the U.S. into a “crypto capital” to support innovation and investment in the sector. Industry insiders have noted the significant backing Trump received from the crypto community during his campaign.
Input from Industry Stakeholders
The New York Times reported on January 16 that crypto executives have been collaborating with Trump’s designated crypto policy advisor, David Sacks. Their discussions have reportedly influenced the framework of the executive order, which is expected to address several areas of crypto regulation and policy.
The Washington Post, on January 13, revealed that Trump’s initial set of executive actions may also focus on repealing policies that hinder crypto adoption. This includes addressing crypto de-banking issues and overturning a regulation requiring banks to classify digital assets as liabilities.
Potential Impacts on Regulation and Litigation
A directive for federal agencies to review their existing crypto-related policies is also under consideration. Notably, this could include freezing active crypto-related litigation. Reuters reported on January 15 that the Securities and Exchange Commission (SEC) under the Trump administration might reconsider ongoing crypto cases, particularly those without fraud allegations.
Industry observers speculate that Trump’s administration could abandon cases such as the SEC’s lawsuit against Ripple Labs. On January 15, Ripple’s chief legal officer, Stuart Alderoty, suggested the case might be dropped under new leadership, as the agency has faced criticism for its handling of crypto enforcement.
Establishing a Bitcoin Reserve
Another significant proposal reportedly under discussion is the creation of a government-held Bitcoin reserve. Advocates argue that holding Bitcoin could serve as an inflation hedge and potentially mitigate the U.S. national debt.
Arkham Intelligence data indicates the U.S. government already holds approximately $20.3 billion in seized cryptocurrencies, with $19.8 billion of that being Bitcoin. Calls for expanding this reserve include a proposal from Senator Cynthia Lummis, who suggested the Treasury purchase 1 million Bitcoin. This move, estimated to cost at least $100 billion based on Bitcoin’s current price of $100,200, would represent a bold commitment to integrating crypto into national policy.
A Transformative Step for Crypto in the U.S.
If enacted, Trump’s executive order could mark a significant turning point for the cryptocurrency industry. By fostering regulatory clarity and collaboration, it could position the United States as a global leader in crypto innovation. However, as the details are still under discussion, the industry eagerly awaits further developments.
The Road Ahead
With a mix of optimism and skepticism, the crypto community is closely watching Trump’s next steps. While proponents of the executive order believe it could unlock new opportunities, critics caution against over-reliance on centralized decision-making in a decentralized industry.
As the January 20 deadline approaches, all eyes remain on the Trump administration’s approach to shaping the future of cryptocurrency in the United States.