Trump’s Executive Order: A New Era for Crypto

President-elect Donald Trump is poised to make significant changes to the cryptocurrency landscape in the United States. He plans to issue an executive order that will elevate cryptocurrency as a key policy priority. This move aims to give industry insiders a more prominent voice within his administration. According to sources familiar with the plans, the executive order is expected to designate cryptocurrency as a national imperative. This strategic language is intended to encourage government agencies to collaborate more closely with the crypto industry. Furthermore, the order will likely establish a crypto advisory council to advocate for the industry’s policy priorities.
Strengthening Ties with the Crypto Industry
Trump’s relationship with the cryptocurrency sector has been notably strong. The industry has a significant presence in Washington, supported by well-funded political action committees. Major companies like Coinbase and Ripple have contributed to Trump’s inaugural committee in recent months. This financial backing reflects the industry’s desire to influence policy in its favor. In a show of support, the crypto community is organizing an โInaugural Crypto Ballโ just days before Trump’s inauguration. This event underscores the industry’s commitment to aligning itself with the new administration.
The anticipated executive order marks a potential turning point for cryptocurrency in the U.S. Under President Joe Biden, the crypto sector faced increased scrutiny. High-profile fraud cases, such as the bankruptcy of the FTX exchange, led to over 100 enforcement actions by federal agencies like the Securities and Exchange Commission. These actions created a challenging environment for crypto companies, making it difficult for them to engage with financial institutions. Trump’s executive order aims to reverse this trend by fostering a more favorable regulatory climate for the industry.
Proposed Changes and Industry Priorities
Among the key components of the executive order is a directive for all government agencies to reassess their policies regarding digital assets. This review may include a pause on ongoing litigation against various crypto companies. Stopping legal actions against major players like Binance Holdings Ltd. and Ripple Labs Inc. is a top priority for the industry. The proposed order reflects a broader strategy to create a more supportive environment for cryptocurrency businesses, which have faced numerous legal challenges in recent years.
Additionally, the establishment of a national Bitcoin stockpile is under consideration. This stockpile would include the U.S. government’s existing holdings of Bitcoin, which are valued at nearly $20 billion. These holdings have been acquired through various investigations. The potential creation of a national Bitcoin stockpile has already sparked optimism in the market, contributing to a nearly 50% increase in Bitcoin’s value since the November election. The cryptocurrency has more than doubled in price in 2024, driven in part by hopes of favorable regulatory changes.
Implications for the Future of Cryptocurrency
The executive order, which could be announced as soon as Monday, is still subject to change. A representative for Trump has not yet commented on the matter. However, industry experts believe that this move could signal a new era for cryptocurrency in the United States. Kara Calvert, vice president for U.S. policy at Coinbase Global Inc., stated that Trump’s actions would indicate that the U.S. is ready to lead in the crypto space. This message could serve as a warning to other countries about the importance of keeping pace with U.S. developments in the industry.
Despite facing regulatory challenges under the Biden administration, the cryptocurrency sector in the U.S. has continued to grow. Major financial institutions, including BlackRock Inc., have launched spot Bitcoin and Ether exchange-traded funds. Additionally, BNY has expanded its crypto custody efforts, while Cantor Fitzgerald has announced plans to establish a Bitcoin financing business. Trump’s embrace of the crypto industry during his presidential campaign further solidifies his commitment to making the U.S. the crypto capital of the world.
As the cryptocurrency landscape evolves, all eyes will be on Trump’s forthcoming executive order. The potential changes could reshape the regulatory framework and provide new opportunities for growth and innovation in the industry.
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