Bitcoin price has surged past $102,000 after news broke that President-elect Donald Trump plans to designate cryptocurrency as a national priority. According to multiple reports, the incoming administration is preparing executive orders aimed at boosting the cryptocurrency sector, including new policies to support industry growth and streamline regulations.
Donald Trump Executive Order to Focus on Cryptocurrency
President-elect Donald Trump is said to be working on an executive order that will ensure that cryptocurrency is viewed as an essential part of the US economy. The order is anticipated to call on the regulators to work closely with the crypto industry and to form a crypto advisory council. This council would afford industry stakeholders an opportunity to raise their concerns and make recommendations.
According to the sources, the executive order could be signed on January 20, the first day of Trump’s presidency. It may also suspend all ongoing crypto cases and order all government bodies to rethink their stance on digital currencies.
Brian Hughes, the spokesperson for Trump’s transition team, said, “President Trump will follow through on his word to promote American dominance in the crypto space.”
Creation of a Bitcoin Reserve Under Discussion
Another idea being floated under the Donald Trump administration is the creation of a national Bitcoin reserve through seized digital assets. At the moment, the U.S. government has about $20 billion worth of Bitcoin and other cryptocurrencies from law enforcement belongings, as per Arkham Intelligence.
The Bitcoin Policy Institute has proposed that $21 billion be invested to make Bitcoin a strategic reserve asset. Should this be implemented it will afford a mechanism through which the U.S. can effectively deal with the issue of debt and enhance its position within the global economy. Amid this discussion, Senator Cynthia Lummis has called out proposed plans by the US Marshals to sell its seized Bitcoin stash which would invalidate the Bitcoin Reserve strategy.
In addition, there are also indications that the Trump administration may expand this reserve to other digital assets such as Solana (SOL) and XRP, as part of a broader plan to diversify national crypto assets.
Review of Banking and Accounting Policies
The new Donald Trump administration is expected to tackle crypto de-banking and repeal the accounting standards that regard banks’ crypto assets as their liabilities. These amendments subsequently are directed towards enabling financial institutions to hold and manage digital assets more efficiently, which will open up the door for the broader market.
Concurrently, according to the Washington Post the SEC could revisit ongoing legal proceedings against crypto companies. Some of the people familiar with the plans said that other cases without fraud allegations may be put on hold under the new administration.
Ripple Labs’ Chief Legal Officer, Stuart Alderoty has recently claimed that the long-standing regulatory actions against the company can be dropped under the Trump administration.
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