Donald Trump's Crypto Strategy Will Elevate Cryptocurrency as National Priority
In a significant policy shift, US President-elect Donald Trump is set to designate cryptocurrency as a national priority through an executive order, according to insiders familiar with the matter. This move indicates a strategic pivot aimed at integrating the burgeoning crypto industry into the core of US policy frameworks.
Under this anticipated order, the term "national imperative or priority" would be strategically used to guide government agencies towards collaborative efforts with the crypto sector. This approach marks a departure from the regulatory crackdowns seen during President Joe Biden's term, where the cryptocurrency industry faced numerous legal challenges due to high-profile fraud cases like the FTX exchange's collapse.
The executive order would also establish a crypto advisory council, tasked with advocating for the industry's policy priorities. This council would serve as a bridge between government policy-making and the crypto community, potentially smoothing the path for less adversarial regulatory interactions.
The implications of this policy shift are profound. During Biden's administration, over 100 enforcement actions were initiated by agencies like the Securities and Exchange Commission (SEC) against crypto entities, while banking regulators restricted financial institutions from engaging with crypto companies. Trump's policy could reverse these trends by encouraging a more symbiotic relationship between finance and technology sectors.
A National Bitcoin Stockpile
Another aspect under consideration is the creation of a national Bitcoin stockpile. With the US government already holding nearly US$20 billion in Bitcoin, mostly seized from criminal investigations, this stockpile would represent a significant governmental endorsement of digital assets. This initiative has contributed to Bitcoin's price surge, rallying almost 50% to above US$100,000 since the November election, driven by expectations of such a policy.
The executive order might also instruct federal agencies to review existing digital asset policies and potentially pause ongoing litigations against crypto firms. This could provide relief to companies like Binance and Ripple, which have been embroiled in legal battles. The cessation of these legal actions would be a major win for the crypto industry, which has been advocating for clearer and more favorable regulations.
Despite these plans, the executive order is not yet finalized and could see changes before its public release, slated possibly for January 20. Trump's administration has promised a flurry of executive actions across various sectors, signaling a proactive stance in industry regulation and international competitiveness.
Kara Calvert, Vice President for US Policy at Coinbase Global Inc, commented on the potential impact, suggesting that this move would signal to the world that the US aims to lead in the crypto industry. This policy could encourage other nations to either align or risk falling behind in the global digital economy race.
Trump's engagement with cryptocurrency didn't start with this executive order; he has actively courted the crypto community. In 2024, he spoke at a Bitcoin conference, promising to make the US the "crypto capital of the world." His involvement in crypto ventures like World Liberty Financial, alongside the crypto industry's financial support through donations and events like the "Inaugural Crypto Ball," underscores a mutual interest in seeing cryptocurrency flourish under his administration.
This strategic embrace of cryptocurrency by Trump could set a new precedent for how digital assets are viewed and managed at the national level, potentially reshaping the landscape of financial technology in the United States.