Donald Trump Plans to Push for Crypto Policy Reform on Inauguration Day
Donald Trump, a vocal advocate for the crypto industry during his campaign, is set to issue executive orders concerning crypto policies on his very first day in office, according to the Washington Post. This move is seen as a direct response to the needs and expectations of the growing cryptocurrency sector, aiming to dismantle what Trump describes as the "Washington bureaucratic swamp" that has been stifling innovation.
Trump’s transition team has been actively engaging with crypto leaders to craft a legislative strategy that resonates with his campaign promises. The focus of these anticipated executive orders includes addressing the contentious issues of de-banking and revising the crypto accounting policies. Specifically, there is a push to repeal a policy that requires banks to treat digital assets as liabilities on their balance sheets, which has been a point of contention for many in the crypto industry.
Revised Crypto Policy a Priority for Trump’s Administration
From the onset, Donald Trump and his team has signaled that these crypto-related reforms are of utmost priority. Sources close to the transition efforts have indicated that the new administration aims to protect cryptocurrency investors and foster an environment conducive to digital innovation. The appointment of Paul Atkins, known for his crypto-friendly stance, as the new Chair of the SEC, underscores this commitment. Other appointments across various departments like the Pentagon and Health and Human Services further illustrate a broad support network for crypto and tech within Trump's cabinet.
Jonah Krane, a partner at Klaros Group, commented on the potential for these executive orders, suggesting that they could direct regulatory agencies to reconsider existing rules, thereby addressing market volatility and providing a supportive framework for crypto growth. This approach is expected to bolster institutional investment in cryptocurrencies, potentially leading to a more robust market environment.
One particularly ambitious proposal is the establishment of a national strategic Bitcoin reserve, an idea drafted by the Bitcoin Policy Institute. This would involve a significant investment of $21 billion over one year to treat Bitcoin as a strategic reserve asset, a move that could redefine the government's relationship with digital currencies. Trump transition team spokesperson Brian Hughes has reaffirmed the commitment to this vision, stating, "President Trump will deliver on his promise to encourage American leadership in crypto."
Despite recent market dips, there's a palpable sense of optimism that Trump's policies could catalyze a resurgence in cryptocurrency values. His administration's pro-crypto stance is viewed as a beacon for market recovery and growth, potentially attracting more investors and stabilizing the volatile crypto landscape. As Trump prepares to take office, the crypto community watches with keen interest, hoping for a policy environment that not only acknowledges but actively promotes the integration of digital currencies into the mainstream financial system.