As he prepares to take office, President Donald Trump is expected to issue an executive order that designates cryptocurrency as a national priority.
According to sources familiar with the situation, as reported by Bloomberg, this executive order may pave the way for a crypto advisory council and encourage collaboration among government agencies and industry stakeholders. It’s anticipated that Trump could sign this order on January 20.
Reports suggest that the order will call for a comprehensive review of crypto policies by all federal agencies and may include a pause on ongoing legal actions against key players in the crypto sector.
Previously covered by crypto.news, it’s expected that the changes will be led by the newly appointed SEC under Trump, with crypto advocate Paul Atkins at the helm.
Throughout the Biden administration, regulators have pursued enforcement actions against major companies like Binance and Ripple, maintaining that many cryptocurrencies fall under the definition of securities according to the Howey Test.
This regulatory pressure and the ambiguity surrounding regulations have created challenges for crypto firms operating in the U.S., prompting some to seek more favorable environments overseas.
Moreover, reports indicate that the executive order may contemplate establishing a strategic reserve for Bitcoin. This reserve would enable the U.S. government to organize and oversee its current crypto assets, which are believed to amount to nearly $20 billion, mostly in Bitcoin obtained through criminal investigations.
Throughout his campaign, Trump promoted the vision of positioning the U.S. as a leader in the crypto space, aiming to establish the nation as the “crypto capital of the world.” Proponents view the proposed Bitcoin reserve as a potential safeguard against inflation and a means to help address the national debt.
Bitcoin has surged back above $100,000, driven by optimism surrounding Trump’s anticipated executive order and expectations for a more favorable regulatory environment.
However, it is important to note that the executive order is still in development and may undergo modifications before its release.
Industry analysts believe that these potential changes could restore the U.S.’s position as a leader in the cryptocurrency field. Kara Calvert, Coinbase’s vice president for U.S. policy, remarked to Bloomberg, “What it signals to other countries is to be cautious or risk falling behind.”
In related developments, there are indications that Trump is also contemplating an “America-first” strategy for a crypto reserve, prioritizing U.S.-based digital currencies like Solana, USD Coin (USDC), and Ripple’s (XRP).
