Trump’s Executive Order to Elevate Crypto
President-elect Donald Trump is set to make a significant move in the cryptocurrency landscape. He plans to issue an executive order that will elevate cryptocurrency as a key policy priority. This initiative aims to give industry insiders a stronger voice within his administration. According to sources familiar with the plans, the order will designate cryptocurrency as a national imperative. This strategic wording is intended to guide government agencies in their collaboration with the crypto industry. Additionally, the executive order is expected to establish a crypto advisory council to advocate for the industry’s policy priorities. This marks a notable shift in the government’s approach to digital assets.
Support from the Crypto Industry
Trump has garnered substantial support from the cryptocurrency sector. The industry has a strong presence in Washington, bolstered by well-funded political action committees. Major companies, such as Coinbase and Ripple, have made significant donations to Trump’s inaugural committee in recent months. In a show of solidarity, the crypto industry is hosting an “Inaugural Crypto Ball” just days before Trump’s inauguration. This event highlights the close relationship between Trump and the crypto community, which sees him as a champion for their interests.
Under President Joe Biden, the crypto industry faced increased scrutiny. Numerous investigations and enforcement actions targeted various companies, including the high-profile bankruptcy of the FTX exchange. The Securities and Exchange Commission (SEC) filed over 100 enforcement actions against the sector, making it challenging for crypto companies to operate. In contrast, Trump’s executive order signals a potential easing of these regulatory pressures. The crypto industry is hopeful that this new administration will foster a more favorable environment for innovation and growth.
Proposed Changes in Policy
The executive order is expected to include several key directives aimed at reshaping the regulatory landscape for cryptocurrencies. One of the most significant proposals is a directive for all government agencies to review their policies regarding digital assets. This review may lead to a pause in ongoing litigation involving crypto companies. Stopping legal actions against major players like Binance Holdings Ltd. and Ripple Labs Inc. is a top priority for the industry. Such a move could provide much-needed relief and stability for companies operating in the crypto space.
Another intriguing proposal under consideration is the creation of a national Bitcoin stockpile. This stockpile would include the U.S. government’s existing holdings of Bitcoin, which are valued at nearly $20 billion. These holdings were confiscated during various investigations. The idea of a national Bitcoin stockpile has generated excitement in the market, contributing to a nearly 50% rally in Bitcoin’s price since the November election. The cryptocurrency has seen its value more than double in 2024, fueled by optimism surrounding Trump’s potential policies.
Implications for the Future of Crypto
Trump’s anticipated executive order could have far-reaching implications for the future of cryptocurrency in the United States. If implemented, it would signal a dramatic shift in how the government interacts with the crypto industry. Kara Calvert, vice president for U.S. policy at Coinbase Global Inc., believes that this move will demonstrate that the United States is ready to lead in the cryptocurrency sector. It sends a clear message to other countries that they must keep pace or risk falling behind.
Despite the regulatory challenges faced during Biden’s administration, the crypto industry has continued to expand. Major financial institutions, including BlackRock Inc., have launched spot Bitcoin and Ether exchange-traded funds. Additionally, BNY has been working to enhance its crypto custody services, 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 Trump prepares to take office, the crypto community eagerly awaits the final details of the executive order. While the specifics are still under discussion, the potential for a more favorable regulatory environment has sparked hope and excitement among industry stakeholders.
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