The U.S. cryptocurrency industry is urging President-elect Donald Trump to begin his promised crypto policy overhaul on his first day in office through executive orders, which could help accelerate the mainstream adoption of digital assets. According to industry insiders, these measures are seen as critical to fulfilling Trump’s campaign promises of supporting crypto innovation.
Trump’s First-Day Executive Actions
Trump is expected to issue numerous executive orders on topics ranging from immigration to energy upon taking office on January 20, reports Reuters. Among these, the crypto industry hopes for specific directives, including:
Establishing a national Bitcoin reserve.
Ensuring crypto firms have access to traditional banking services.
Creating a dedicated cryptocurrency council to foster innovation and provide regulatory clarity.
The industry is pushing for these actions within Trump’s first 100 days, with some insiders speculating that at least one executive order could be unveiled on January 20.
Rebecca Rettig, Chief Legal and Policy Officer at Polygon Labs, emphasized the importance of these early actions, stating, “Given the tenor of the campaign, it’s imperative for executive orders to outline clear priorities and provide a roadmap.”
Shift in Crypto Regulation Approach
The Biden administration faced criticism from the crypto sector for its stringent regulatory stance, citing concerns over crime and market volatility. Trump’s team, however, promises to reverse this course. Recent announcements, including the appointments of crypto-friendly Securities and Exchange Commission (SEC) Chair Paul Atkins and White House Crypto Czar David Sacks, signal a more supportive approach to the industry.
Brian Hughes, a spokesperson for Trump’s transition team, stated, “There has been an effort in the Washington bureaucratic swamp to stifle innovation… but President Trump will deliver on his promise to encourage American leadership in crypto.”
Plans for a Bitcoin Reserve
One of Trump’s most ambitious proposals is the creation of a strategic Bitcoin reserve. Bitcoin recently hit record highs of over $107,000 following Trump’s renewed commitment to this plan, though it has since fallen below $100,000. Analysts remain divided on whether Trump can establish such a reserve through executive powers or if Congressional approval would be required.
The Bitcoin Policy Institute has even drafted a potential executive order, designating Bitcoin as a strategic reserve asset and tasking the Treasury Secretary to accumulate $21 billion worth of Bitcoin within a year. Zack Shapiro, the institute’s head of policy, highlighted the geopolitical importance of such a move, stating, “The U.S. should get ahead of its rivals in monetizing Bitcoin.”
Addressing Banking Challenges for Crypto Firms
Trump has also pledged to prevent banks from excluding crypto companies from traditional financial systems. While an executive order could signal support for crypto-friendly banking practices, experts caution that federal bank regulators operate independently, limiting the immediate impact of such directives.
Jonah Crane, a partner at Klaros Group, noted, “An executive order might indicate the administration’s intentions but won’t necessarily change policy on the ground immediately.”
Formation of a Crypto Council
Discussions are underway regarding the creation of a crypto industry council, which could be established through an executive order. Such councils have been successfully formed in the past to address specialized sectors. Additionally, Trump’s administration may issue broader directives to reexamine existing crypto regulations, similar to a 2017 order reviewing banking rules.
“I wouldn’t be surprised if you see an executive order early on directing agencies to reassess their rules in the crypto space,” Crane added.
Conclusion
The crypto industry is optimistic about Trump’s presidency, viewing it as an opportunity to address longstanding regulatory challenges and establish the U.S. as a global leader in digital innovation. With executive orders potentially paving the way for significant policy shifts, all eyes are on Trump’s first day in office and the months that follow.
