President-elect Donald Trump could start his term with an executive order designating crypto as a national priority.
Unnamed sources are said to have knowledge of the matter told Bloomberg that the order could create a crypto advisory board and push government agencies to work with the industry. There’s a good chance the returning president could sign it on Jan. 20, she added.
Discussions are reportedly underway regarding the order to include a directive for all federal agencies to review their crypto policies, with the possibility of pausing ongoing lawsuits against major industry players.
As previously reported by crypto.news, some of these changes are expected to be spearheaded by the new SEC under Trump, led by crypto-friendly Paul Atkins.
Under the Biden administration, regulators have taken enforcement actions against prominent companies like Binance and Ripple. The regulator has argued that many cryptocurrencies qualify as securities under the Howey Test.
Such enforcement actions and the lack of regulatory clarity have made it difficult for crypto companies to operate in the United States, prompting some to explore friendlier jurisdictions abroad.
According to the sources, another consideration of the executive order is the creation of a strategic Bitcoin reserve. This reserve would allow the US government to consolidate and manage its existing crypto holdings, which are reportedly close to $20 billion, mainly in Bitcoin seized from criminal investigations.
During his campaign, Trump embraced the idea of making the US a leader in crypto, promising to make it the “crypto capital of the world.” Proponents see the proposed Bitcoin reserve as both an inflation hedge and a way to tackle the national debt.
Bitcoin has rebounded above $100,000, fueled by optimism over Trump’s expected crypto order and hopes for a supportive regulatory shift.
Sources, however, noted that the order has not yet been finalized and could be revised before it is made public.
Market participants expect these changes to restore the US as a leader in the crypto industry. Trump’s policy changes will be an indication that the United States is back and ready to lead, Kara Calvert, vice president for U.S. policy at Coinbase, told Bloomberg.
“What it makes clear to other countries is that you have to be careful or you won’t keep up,” she added.
In related news, another report suggests that Trump is considering an “America-first” crypto reserve strategy, prioritizing US-founded digital assets such as Solana, USD Coin (USDC) and Ripple’s (XRP).
