As a crypto investor, I’m eagerly anticipating the potential impact of President-elect Donald Trump’s administration on our sector. According to recent news, influential figures in the crypto world are actively lobbying for Trump to establish a U.S. Bitcoin reserve once he assumes office on January 20th. It seems that Trump may issue a series of executive orders from day one, and the crypto community is aiming to be part of this agenda by pushing for favorable crypto-related orders.
US Bitcoin Reserve Approval Soon Under Donald Trump?
Following Donald Trump’s swearing-in ceremony, the crypto sector is pressuring the newly elected administration to fulfill their campaign pledges by creating a favorable regulatory climate for cryptocurrencies. The industry has optimism towards Trump, given his previous commitment to act as a “Crypto President”.
According to reliable sources, the main pledges encompass the establishment of a U.S. government-supported Bitcoin depository, facilitating crypto firms’ usage of banking facilities, and creating a specialized cryptocurrency advisory board, as per Reuters’ report.
Experts suggest that certain executive orders are being aggressively advocated by industry insiders, aiming for their issuance during the initial 100 days of President Trump’s term. It is anticipated that one such order might even be unveiled as soon as January 20th.
Analysts are wondering if the incoming president will utilize executive orders, possibly via the Treasury Department, to create a federal Bitcoin reserve, or if this action necessitates approval from Congress.
Bitcoin Policy Institute Submits Draft Proposal
A lobbying organization focused on the digital currency sector, known as the Bitcoin Policy Institute, has put forth a preliminary plan detailing methods for establishing a central Bitcoin reserve. This proposal suggests accumulating a significant Bitcoin asset as part of a strategic national reserve and directs the Secretary of the Treasury to distribute approximately $21 billion over the course of a year for the acquisition of this digital currency stockpile.
Zack Shapiro, who is in charge of policy at the Bitcoin Policy Institute, stressed the urgency for the U.S. to take the initiative in converting Bitcoin into currency before its global competitors do so. He stated, “It’s crucial for the U.S. to act promptly, to prevent the value from drastically increasing without any controlled reserves.” Countries such as Bhutan, Hong Kong, Germany, and the Czech Republic are currently making strides in this area.
Recently, there has been a significant shift in actions by the current Biden administration, as reports circulate about the U.S. government offloading Bitcoin valued at approximately $6.7 billion. This Bitcoin was acquired through seized assets related to the Silk Road operation, and these recent transactions have sparked concern and negative market sentiment.
What to Expect With Crypto Policy Changes?
Previously in July, Donald Trump declared his intention to discontinue Operation Choke Point, which had been limiting cryptocurrency companies by traditional banks. Issuing an executive order that encourages bank regulators to take a less restrictive approach towards cryptocurrencies might indicate the administration’s viewpoint and provide protection for agency personnel against potential criticism.
Nevertheless, certain executives warned that it might not carry the weight of legal authority because federal banking regulators function autonomously. In other words, according to Jonah Crane, a partner at financial firm Klaros Group, there could be issues with their independence.
On their first day, there won’t be an immediate shift in policy implementation. However, they will communicate where their administration aims to go.
Nevertheless, Brian Hughes, who heads Trump’s transition team, mentioned that they are proactively working to alleviate issues within the crypto industry. In essence, he stated that there has been an attempt to restrict innovation within the Washington bureaucracy, but President Trump will uphold his pledge to foster American dominance in cryptocurrency.
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2025-01-09 15:03