President-elect Donald Trump’s forthcoming executive order, as reported by Bloomberg, signifies a pivotal shift towards embracing cryptocurrency within the U.S. national policy framework. This planned directive, as noted by the publication, aims to elevate crypto to a status of national priority, compelling government agencies to collaborate more closely with the industry. A significant aspect of this order includes the establishment of a crypto advisory council, which would serve as a platform for industry insiders to influence policy decisions directly.
This move comes at a time when Trump has garnered considerable backing from the cryptocurrency sector, highlighted by substantial donations from companies like Coinbase (COIN) and Ripple (XRP) to his inaugural committee. The industry’s support is further showcased by the “Inaugural Crypto Ball” organized in Trump’s honor, reflecting the sector’s political clout and its readiness to engage with the new administration.
The executive order could undo some of the stringent oversight the crypto industry experienced under President Joe Biden, particularly following the fallout from high-profile fraud cases like the collapse of FTX. The Biden administration’s approach included rigorous enforcement, with over 100 actions by agencies like the Securities and Exchange Commission against crypto operations, alongside banking restrictions that made financial partnerships challenging for crypto firms.
Bloomberg notes that one of the key elements still being deliberated for the executive order is a potential pause on current and ongoing litigation against crypto companies. This would be a significant relief for firms like Binance and Ripple Labs, which have been entangled in legal battles. The crypto industry sees this as crucial for stabilizing and fostering growth within the sector.
Moreover, the idea of establishing a national Bitcoin (BTC) stockpile is also on the table, according to the report. This would involve leveraging the U.S. government’s existing Bitcoin holdings, which amount to nearly $20 billion from various law enforcement actions. This proposal has been partly credited for Bitcoin’s significant price surge, reaching above $100,000 post-election, as investors anticipate a more crypto-friendly policy environment.
However, it’s worth noting that the details of the executive order remain fluid. Sources familiar with the matter told B’berg that while the order could be formalized as early as Monday, its content might still evolve before going public. This reflects the dynamic nature of policy-making in such a nascent and volatile sector like cryptocurrency.
This executive order could set the tone for how the U.S. navigates the complexities of digital assets, potentially leading to a more regulatory environment that encourages innovation while still safeguarding against fraud and financial instability. The implications of these policies could extend beyond the U.S., influencing global crypto markets and regulatory approaches worldwide.
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