Crypto to be made a national priority in rumored Trump executive order
Incoming President Donald Trump could kick off his term with an executive order that designates crypto as a national priority.
Unnamed sources believed to have knowledge of the matter told Bloomberg that the order could create a crypto advisory council and direct government agencies to collaborate with the industry. Chances are the returning president could sign it on Jan. 20, they added.
Discussions are reportedly underway for the order to include a directive for all federal agencies to review their crypto policies, with the possibility of pausing ongoing litigation against major industry players.
As previously reported by crypto.news, some of these changes are expected to be spearheaded by the new SEC under Trump, led by crypto-friendly Paul Atkins.
Under the Biden administration, regulators have brought enforcement actions against prominent firms like Binance and Ripple. The regulator has argued that many cryptocurrencies qualify as securities under the Howey Test.
Such enforcement actions and the lack of regulatory clarity have made it difficult for crypto companies to operate within the United States, pushing some to explore friendlier jurisdictions abroad.
According to the sources, another consideration of the executive order is the creation of a strategic Bitcoin reserve. This reserve would allow the U.S. government to consolidate and manage its existing crypto holdings, which reportedly total nearly $20 billion, primarily in Bitcoin seized from criminal investigations.
Trump embraced the idea of making the U.S. a leader in crypto during his campaign, pledging to turn it into the “crypto capital of the world.” Advocates view the proposed Bitcoin reserve as both an inflation hedge and a way to tackle the national debt.
Bitcoin has recovered back above $100,000, fueled by optimism over Trump’s anticipated crypto order and hopes for a supportive regulatory shift.
However, sources noted that the order has not been finalized and could be revised before it is made public.
Market participants expect these changes to reestablish the U.S. as a leader in the crypto industry. Trump’s policy changes will be a hint that the United States is back and ready to lead, Kara Calvert, vice president for U.S. policy at Coinbase, told Bloomberg.
“What it’s signaling to other countries is be careful, or you won’t keep up,” she added.
In related news, another report suggests that Trump is considering an “America-first” crypto reserve strategy, which would prioritize U.S.-founded digital assets such as Solana, USD Coin (USDC), and Ripple’s (XRP).
