President-elect Donald Trump is considering issuing an executive order that makes cryptocurrency a national priority in his return to the White House, Bloomberg said Thursday, noting sources with insights into the plans.
The planned designation would encourage federal agencies to engage with the cryptocurrency industry, which has grown as one of major issues over the latest presidential cycle.
One of the most noteworthy points reportedly under discussion is the review of digital asset policies and potentially suspension of legal actions targeting high-profile companies like Coinbase and Ripple.
Trump is Here…
Under the current administration, the Securities and Exchange Commission (SEC), a key regulatory body for the crypto industry, has initiated over 100 enforcement actions against digital asset firms in the US.
These actions come despite ambiguous regulatory frameworks, prompting several companies to exit the market. The industry sees halting these legal actions as a top priority, as ongoing litigation has caused uncertainty and challenges for those operating in the crypto space.
According to a recent report from Reuters, the SEC is likely to review and possibly freeze litigation involving crypto firms that does not include fraud allegations following Trump’s inauguration.
The change, which may come with the expected leadership overhaul at the SEC, potentially affects existing securities law violation cases against crypto companies.
The executive order will also likely order the establishment of a crypto advisory council, a Trump-proposed body dedicated to advising the administration on crypto-related policy matters. The council is aimed at giving industry insiders a platform to voice their concerns, priorities, and recommendations directly to policymakers.
Trump’s team has been in discussions with crypto executives to shape these policies. David Sacks, appointed as Trump’s AI and crypto czar, has reportedly been working closely with industry leaders to develop a legislative agenda for the industry.
Nation Bitcoin Reserve Proposal under Consideration
One of the most anticipated proposals under discussion is the establishment of a US Bitcoin reserve, which may be included in the executive order on day one. Trump has pledged to create a national Bitcoin stockpile if elected.
While it’s still unclear how a Bitcoin reserve under Trump would look like, experts caution that implementing it through an executive order does not assure its lasting existence.
According to the New York Digital Investment Group (NYDIG), a Bitcoin reserve established through legislative action, like the BITCOIN Act, would have a better chance of enduring beyond any single administration, though the process to make it law could be lengthy.
The US government currently holds 198,109 BTC seized from the notorious Silk Road crackdown. At a current price of $101,000, the Bitcoin stash is worth over $20 billion. If Trump proceeds with the Bitcoin reserve plan, the Bitcoin holdings would be added to the strategic asset for the nation.
Advocates believe that establishing a Bitcoin reserve could alleviate national debt and enhance America’s economic position if cryptocurrencies gain global prominence.
Altcoin Reserve Speculation
The New York Post reported Thursday that there may be more than just a Bitcoin national stockpile.
Trump has held several meetings with industry leaders and project founders since his election victory. The President-elect is reported to have been “receptive” to the concept of making a strategic reserve that incorporates the U.S.-originated altcoins like Solana (SOL), Ripple (XRP), and USD Coin (USDC).
Companies behind these projects have yet to comment on this matter, but crypto figures and community members see the altcoin reserve as a step back. David Bailey, BTC Inc CEO, outright rejects the idea as “fake news” and labels XRP “Kamala coin.”
Almeida, co-founder of Orquestra, expresses strong disappointment, suggesting that the move would severely damage the credibility of whoever made the decision, while Mike Dudas, The Block’s co-founder, says the idea is incredibly foolish and disastrous.