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The US cryptocurrency market anticipates potential executive directives from Trump on day one.
FINTECH-CRYPTO-TRUMP-EXECUTIVEORDERS: The US cryptocurrency market anticipates potential executive orders from Trump on day one.
According to industry officials, the cryptocurrency industry is pressuring President-elect Donald Trump’s team to issue executive orders that would assist mainstream tokens as part of his promised crypto policy overhaul when he takes office next month.
According to a Reuters report this month, Trump intends to issue a slew of executive orders and directions on everything from immigration to energy on his first day in office on January 20.
According to the people, the business wants Trump to fulfill his campaign promises to be a “crypto president,” which included establishing a bitcoin stockpile, granting the industry access to banking services, and establishing a crypto council.
According to two other sources with knowledge of the situation, they are working to get those executive orders issued during Trump’s first 100 days in office, and they anticipate that at least one will be issued on January 20.
Given the campaign’s tone, executive orders would need to clearly outline the true priorities on day one and offer a roadmap of sorts, according to Rebecca Rettig, chief legal and policy officer at cryptocurrency startup Polygon Labs.
President Joe Biden’s authorities clamped down on cryptocurrency companies out of fear of criminality and volatility, but Trump has promised to change direction. With the appointment of White House crypto czar David Sacks and crypto-friendly Securities and Exchange Commission head Paul Atkins this month, his crypto policy team is already beginning to take shape.
A spokesman for the Trump transition team, Brian Hughes, said in a statement, “President Trump will fulfill his pledge to support American leadership in crypto, despite attempts in the Washington bureaucratic swamp to stifle innovation.”
The largest cryptocurrency in the world, Bitcoin, reached new highs around $107,000 this month after Trump restated his plan for a strategic bitcoin reserve, which he first announced in a July address. Since then, Bitcoin has dropped back below $100,000.
There is disagreement among analysts over whether Trump could establish the reserve using administrative authority—possibly through the Treasury Department—or if a congressional act would be required.
The Bitcoin Policy Institute, a trade association, has even gone so far as to write the language of a possible executive order that Trump would use to create such a stockpile.
The proposal, which Reuters obtained, would make bitcoin a strategic reserve asset and mandate that the Treasury Secretary spend $21 billion over the course of a year to build up a national bitcoin stockpile.
The head of policy of the Bitcoin Policy Institute, Zack Shapiro, stated that the US should monetize bitcoin before its geopolitical competitors, “rather than have the price run up without the United States having any reserves.” He would not say whether the group had given Trump’s team access to the draft.
Some CEOs anticipate that Trump would attempt to handle the issue with an executive order, since he stated in July that he would not allow banks to “choke” cryptocurrency companies out of the traditional financial system. Crypto businesses have a long
Some executives cautioned that although an executive order telling bank regulators to relax their rules on cryptocurrency would provide agency officials political cover and send a message, it is unlikely to have legal impact because federal bank regulators are independent.
“are not going to change policy on the ground on day one,” stated Jonah Krane, a partner at the Klaros Group’s financial firm. “But they will tell you what direction this administration wants to head.”
Trump has also stated that he will establish a council for the cryptocurrency industry, and his administration is debating the organization and composition of this council. Executives pointed out that prior administrations had established specialized committees by executive decrees.
In a broader sense, Trump can also attempt to address objections from the cryptocurrency community that the current regulations are unsuitable for the sector by issuing an executive order outlining fundamental principles for crypto regulation, like to the one he issued in 2017 instructing authorities to examine banking regulations.
“I wouldn’t be surprised if you get something like an executive order early on that directs the agencies to re-examine their rules in this space,” Krane said.
Frequently Asked Question
The US cryptocurrency market anticipates executive orders that could include establishing a national bitcoin stockpile, granting crypto businesses better access to banking services, and creating a dedicated crypto council. These actions align with Trump’s campaign promises to support the cryptocurrency industry.
A national bitcoin stockpile could position the United States as a leader in cryptocurrency by monetizing Bitcoin as a strategic reserve asset. Industry advocates argue that this would ensure the US remains competitive in the global crypto landscape and prevent other nations from dominating the market.
Executive orders could direct federal bank regulators to ease restrictions on cryptocurrency companies, potentially enhancing their access to traditional financial systems. However, since federal bank regulators operate independently, such orders may influence policy direction but not have immediate legal effect.
The crypto council, as envisioned by Trump’s administration, would provide a platform for collaboration between the government and the cryptocurrency industry. It could help shape regulatory frameworks and address the industry’s unique challenges and opportunities.
The Biden administration focused on stricter oversight of cryptocurrency companies due to concerns about criminal activity and market volatility. In contrast, Trump’s proposed policies aim to foster innovation and integrate cryptocurrencies more deeply into the financial system, as evidenced by his commitment to a bitcoin reserve and crypto-friendly appointments.
