- Trump’s executive order aims to reshape U.S. crypto policy, focusing on innovation and creating a national Bitcoin reserve.
- A crypto advisory council will connect the government with industry leaders, shifting away from Biden’s rigid enforcement approach.
- Institutional support, led by BlackRock, and Trump’s pro-crypto policies signal a promising future for the digital asset market.
Donald Trump, the president-elect of the United States of America is planning to sign an executive order which will be a big blow for the U.S. crypto policy. The order will be released in coming weeks and could have a major impact on the rules of the industry. This is a big shift from the Biden administration that had gone ahead to enforce more rigid measures within the crypto industry.
The executive order has one of the key elements that provides for the establishment of a crypto council. This council will help the government to discuss with the stakeholders for the regulation of cryptocurrencies. The goal has been to protect the U.S economy as the country focuses on becoming an international leader in the digital asset market. This step is an opposite to the actions of the previous administration which was quite aggressive and involved numerous enforcement actions against such big players in the market as FTX and Binance.
Boosting Innovation in Crypto
The order will require federal agencies to revise their plans for managing digital assets. The emphasis will be made on the improvement of conditions that support innovation and growth. The Trump plan may also stop the current legal proceedings including Ripple Labs and Binance. This would then help the crypto industry address some of its legal questions.
The executive order also has another important clause – the establishment of a national Bitcoin reserve. At the moment, in the United States, $20 billion worth of Bitcoin is held by the government as a result of various legal actions. With the creation of a national reserve, the Trump’s administration may be cementing the country’s shift towards the use of Bitcoin as official currency.
Institutional Backing Fuels Growth
Cryptocurrency has always been of interest to Trump throughout his political career. In his presidential race, he promised to help the US become a world leader in the use of blockchain technology. The Trump family has used World Liberty Financial, which owns Ethereum, Aave, and other digital tokens.
This decision is made at a time when the institutional interest in cryptocurrencies is rising. BlackRock is the world’s biggest asset manager, and it is now invested in Bitcoin and Ethereum. This institutional support and Trump’s policies may help propel the growth of the crypto market and give investors clarity of the law.
Washington is also not an exception in feeling the effect of the crypto industry. Ideas for a ‘Crypto Ball’ to celebrate Trump’s term as president signal the rising influence of cryptocurrencies. The industry is gradually moving from a specialty area to being a mainstream component of the international financial system.