The elected president has stated that this will be one of the most significant policy shifts in the digital asset space in recent years. From day one, Donald Trump will make cryptocurrency a core focus of his administration.
According to Bloomberg, sources familiar with the plans have revealed that the executive order will prioritize the development of digital assets as a national policy area and lay the groundwork for significant regulatory changes favorable to the cryptocurrency industry.
The upcoming order is expected to usher in a new era of support for cryptocurrency governance, marking a substantial shift from the regulatory stance of the outgoing Biden administration. While there has been an increase in scrutiny and legal actions against the cryptocurrency industry during President Biden’s tenure, Trump’s initiative represents a clear move towards supporting innovation and positioning the United States as a global leader in cryptocurrency policy.
Cryptocurrency as a Core Policy Focus
The executive order will emphasize integrating digital assets into the U.S. economy in a structured and regulated manner. A national framework for cryptocurrency is expected to be established, potentially including the formation of a new cryptocurrency advisory committee to ensure that the industry has a direct voice in federal policy-making. This marks an important step in fostering collaboration between the government and the private sector, as the Trump administration seeks to promote U.S. leadership in the growing digital economy.
A key component of the executive order will be authorizing federal agencies to review and update their digital asset policies, providing clarity and consistency for businesses and investors in the industry. This move is expected to create a more stable environment for cryptocurrency companies to operate, eliminating previous ambiguities that hindered innovation.
Changing the Regulatory Approach of the Biden Administration
The decision to prioritize cryptocurrency comes at a time when the U.S. cryptocurrency industry is facing significant regulatory challenges. Under President Biden’s leadership, federal agencies have taken over 100 enforcement actions against cryptocurrency companies, with high-profile cases such as the bankruptcies of FTX and other major exchanges leading to more stringent scrutiny. Additionally, policies implemented by the Biden administration have made it more difficult for cryptocurrency companies to access banking services, leading many to perceive the industry’s environment as stifling.
Trump’s plans to reverse these trends reflect a broader vision of reducing regulatory burdens and promoting economic growth through innovation. By prioritizing cryptocurrency, he aims to revitalize the U.S. position as a cryptocurrency hub and encourage investment and job creation in the industry.
Establishing a National Cryptocurrency Reserve
One of the most significant aspects of the executive order may be the establishment of a national Bitcoin reserve. Sources indicate that the U.S. government may consolidate Bitcoin worth up to $20 billion seized through federal investigations into an official reserve. This move would not only enhance the U.S. government’s standing in the global digital asset market but also lay the groundwork for future economic and financial strategies involving cryptocurrency.
As Bitcoin’s value has surged in recent years, establishing a government-supported reserve could also strengthen the U.S. Treasury’s ability to engage with digital assets as part of broader economic policy. A national reserve could pave the way for the further integration of cryptocurrency into the mainstream financial system, allowing the U.S. to capitalize on the growing demand for digital currencies.
An Industry-Friendly Regulatory Environment
The executive order is also expected to address one of the most pressing issues facing the cryptocurrency community: legal uncertainty. Sources suggest that the order may pause lawsuits against well-known companies like Ripple Labs and Binance, which have faced regulatory actions during the Biden administration.
This would provide relief for companies embroiled in legal disputes, allowing them to focus on innovation and growth rather than defending themselves against government enforcement actions.
Increasing Influence of the Industry
The growing influence of the cryptocurrency industry on U.S. politics is exemplified by the “Inaugural Cryptocurrency Ball” set to take place on Friday in Washington, D.C. This high-profile event is a gathering of cryptocurrency executives, investors, and enthusiasts, with private dinner tickets for the elected president reaching as high as $1 million.
Major cryptocurrency firms such as Circle, Coinbase, Kraken, and MicroStrategy have all signed on as sponsors, underscoring the level of support for Trump’s pro-cryptocurrency policies within the industry.
“America First” Digital Asset Strategy
While the executive order supporting cryptocurrency has largely been praised, not all aspects of Trump’s strategy are without controversy. One particularly contentious proposal is the establishment of an “America First” digital asset reserve, which would prioritize U.S. cryptocurrencies such as Solana, USDC, and XRP. This idea has raised concerns within the industry, with some insiders arguing that it could undermine Bitcoin’s position as the leading digital asset, according to Coindesk.
However, Trump’s willingness to engage with key figures behind these cryptocurrencies indicates that his administration is open to supporting a broad range of digital assets, not just Bitcoin. According to the New York Post, sources closely tied to Trump’s campaign have indicated that discussions about incorporating the “America First” strategy into the executive order are already underway, although it remains unclear whether it will be finalized in the initial round of policies.