Washington DC: President-elect Donald Trump is reportedly preparing an executive order that will designate cryptocurrency as a national priority, marking a major shift in U.S. crypto policy. The proposed order aims to enhance collaboration between the government and the crypto industry by creating a crypto advisory council to advocate for industry priorities, according to sources familiar with the matter.
The move underscores Trump’s intent to make the United States a global leader in digital assets, aligning with promises made during his presidential campaign to position the U.S. as the "crypto capital of the world."
Key Provisions of the Proposed Executive Order
The executive order is expected to:
- Designate crypto as a national imperative, urging government agencies to work closely with industry stakeholders.
- Establish a crypto advisory council to provide guidance on policy priorities.
- Direct a review of digital asset policies across federal agencies, with discussions on pausing ongoing crypto-related litigation.
The order may also include a directive to create a national Bitcoin stockpile, consolidating the government’s existing holdings of approximately $20 billion worth of Bitcoin. These holdings were seized in various federal investigations, as reported by analytics firm Arkham.
Crypto Industry’s Support for Trump
Trump’s pro-crypto stance has earned him significant backing from the industry. Major companies, including Coinbase and Ripple, have contributed to his inaugural committee. To celebrate his return to the White House, the industry is hosting an "Inaugural Crypto Ball" on Friday, days before his swearing-in ceremony.
Kara Calvert, Vice President for U.S. Policy at Coinbase, stated, “What I think Donald Trump is going to do is signal that the United States is back and ready to lead in this industry. This is a warning to other countries that they risk falling behind.”
Challenges Under Biden and Industry Growth
The cryptocurrency industry faced increased scrutiny during Joe Biden’s presidency, with over 100 enforcement actions filed by federal agencies like the Securities and Exchange Commission (SEC). High-profile cases, including the collapse of FTX and actions against Binance and Ripple Labs, highlighted regulatory hurdles.
Despite this, the crypto sector saw substantial growth, with major financial firms like BlackRock and BNY Mellon expanding their crypto initiatives. Bitcoin’s price has rallied by nearly 50% since Trump’s November election victory, crossing $100,000, driven by optimism surrounding his pro-crypto policies.
Trump’s Vision for U.S. Crypto Leadership
During his campaign, Trump pledged to foster innovation in digital assets and promised to reshape the regulatory landscape. He headlined a Bitcoin conference last July, vowing to prioritize the crypto industry. Additionally, Trump-branded NFT collections and his family’s crypto initiative, World Liberty Financial, further signaled his alignment with the sector.
The proposed executive order, expected as early as Monday, is still subject to changes, according to sources. If implemented, it could signal a significant policy shift, encouraging global innovation while solidifying the U.S.’s position in the rapidly evolving digital asset landscape.
A New Era for Crypto?
As Trump prepares to re-enter the White House, his administration’s embrace of cryptocurrency could reshape the sector’s future in the U.S. and globally. The executive order is anticipated to set the tone for his administration’s broader economic and technological policies, further cementing cryptocurrency’s role in the global economy.
