President-elect Donald Trump is preparing to release an executive order to prioritise cryptocurrency on national policy. The order is expected to elevate crypto’s significance in government operations and establish an advisory council to advocate for industry priorities.
This marks a significant shift in the U.S. government’s approach to digital assets, aiming to build a more supportive framework for the burgeoning sector.
A Strategic Shift for the Crypto Industry
The initiative, which Bloomberg first reported, seeks to guide federal agencies in engaging with crypto industry leaders. The Trump administration’s move comes as the industry faces ongoing legal and regulatory challenges, hoping for relief under new leadership.
The proposed executive order is also likely to freeze litigation involving cryptocurrencies, particularly cases without allegations of fraud, and could direct government agencies to review existing crypto-related policies.
The crypto community views Trump’s approach as a potential game-changer. Over the years, the industry has dealt with stringent regulations and enforcement actions that hindered its growth.
With Trump’s incoming administration signalling support, many stakeholders are optimistic about the U.S. positioning itself as a global crypto hub.
Industry insiders are particularly enthusiastic about the proposed Bitcoin reserve, which would enable the U.S. government to retain seized crypto assets.
Currently, data from Arkham Intelligence shows that the government holds nearly $20.3 billion in digital assets, with $19.8 billion of that being Bitcoin.
Pro-Crypto Leadership in Key Roles
The administration’s commitment to crypto is further underscored by its choice of high-profile appointees with crypto-friendly stances. To name a few, Scott Bessent, nominated as Treasury Secretary, has openly expressed his support for cryptocurrencies.
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Howard Lutnick, the pick for Secretary of Commerce and CEO of Cantor Fitzgerald, manages substantial U.S. Treasury assets for Tether, a prominent stablecoin issuer.
Elon Musk, tasked with overseeing the Department of Government Efficiency, has long championed Bitcoin and Dogecoin.
David Sacks, appointed as the artificial intelligence and crypto czar, will spearhead efforts to create a comprehensive legal framework for crypto operations.
Vivek Ramaswamy and Steve Witkoff are among other influential figures expected to play pivotal roles in shaping U.S. crypto policies. This lineup of appointees reflects Trump’s strategic alignment with the crypto industry, which heavily backed his campaign.
Support from the Industry and Critics’ Concerns
The crypto sector has rallied behind the proposed initiatives, viewing them as long-overdue reforms. The Washington Post has reported that Trump is likely to halt “de-banking” practices, ensuring financial institutions do not discriminate against crypto businesses.
However, critics caution against prioritizing U.S.-centric digital assets like Solana, Ripple, and USDC, which could overshadow the global nature of crypto.
Concerns about potential conflicts of interest among political appointees have also surfaced. To address this, the administration plans to vet officials rigorously, with some candidates agreeing to divest their crypto holdings.
Why the Trump Administration Matters for Crypto
Trump’s focus on cryptocurrency signals a potential turning point for the industry. The U.S. has long lagged in adopting crypto-friendly policies compared to other countries, often driving innovation offshore.
By positioning the U.S. as a “crypto capital,” Trump aims to harness the economic and technological benefits of blockchain technology.
The administration’s moves could create a favourable environment for startups, institutional investors, and blockchain developers. Simplified regulations, financial support, and reduced litigation risks may encourage growth, innovation, and job creation in the sector.
While many welcome these developments, the road ahead remains uncertain. Balancing regulatory oversight with industry growth will be critical.
The world is watching closely as Trump prepares to sign a series of crypto-related executive orders, with January 20 anticipated as a pivotal day for the sector.
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