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Trump Plans to Prioritize Crypto with New Executive Order

Crypto News, Cryptocurrency, SEC, Trump

Crypto
  • President-elect Trump plans to sign an executive order making cryptocurrency a national priority, focusing on reshaping U.S. crypto regulation.
  • The order may establish a crypto council to streamline regulatory and industry dialogue, addressing de-banking and stablecoin issues.
  • Advocates push for a government-held Bitcoin reserve, with proposals like acquiring 1 million BTC as an inflation hedge.

President-elect Donald Trump is reportedly ready to sign an executive order naming cryptocurrency a national priority in what could be a dramatic reshaping of the crypto landscape in the United States. The directive, expected as early as Jan. 20—Trump’s first day back in office—could chart a new regulatory course for the industry.

Bloomberg reported on Jan. 17 that the proposed executive order would direct federal agencies to work closely with the crypto industry, possibly forming a dedicated crypto council to outwardly represent the sector’s policy priorities. This council would aim to facilitate seamless communication between regulators and crypto players. In doing so, it seeks to break with the perceived hostility of past administrations.

Trump is known for his flair for the dramatic in making big moves and has hinted at a vision of sorts for a U.S. “crypto capital ” for some time. Members of the crypto community heavily supported his campaign, and his dedication to the industry has created speculation of an imminent act on his part.

Furthermore, the New York Times reports on Jan. 16 reveal that prominent crypto executives have provided input to David Sacks, Trump’s designated crypto czar. Such consultations centered on concocting a wide-sweeping executive order to cover everything from de-banking issues to oversight of stablecoins.

Trump Tackles Crypto Debanking and Regulations

The Washington Post reported on Jan. 13 that Trump is set to address concerns over de-banking and dismantle policies forcing banks to count crypto holdings as liabilities. Supporters see this as necessary to integrate digital assets seamlessly with the mainstream financial sector.

Under Trump’s presidency, the Securities and Exchange Commission (SEC) might turn less aggressive on crypto enforcement. According to a report by Reuters on Jan. 15, the SEC might stand down from ongoing cases that do not involve fraud allegations as a sign of an impending pivot on regulatory priorities. Industry contacts speculate that the new administration will settle or dismiss contentious cases in the extended case between the SEC and Ripple Labs.

Moreover, Stuart Alderoty, Ripple Labs’ Chief Legal Officer, has expressed optimism. He suggested that the next administration could abandon the agency’s lawsuit against Ripple, marking a significant win for the industry.

Establishing a government-held Bitcoin reserve is one of the most intriguing aspects of the rumored executive order. Proponents say such a reserve could act like an inflation hedge while helping to alleviate national debt. According to data from Arkham Intelligence, the U.S. government already holds $20.3 billion worth of seized cryptocurrencies, including $19.8 billion in Bitcoin.

Senator Cynthia Lummis has even gone so far as to propose a bill to prompt the Treasury to buy up to 1 million BTC. At its current price of about $100,200, that would be a $100 billion investment- a bold, perhaps game-changing investment.

Related | Dubai Crypto Tower and Tokyo Bitcoin Hotel Lead the Future of Crypto Real Estate

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