A significant policy shift in the United States may soon change the course of crypto regulations seen under President Biden. President-elect Donald Trump is preparing an executive order to prioritize cryptocurrency at the national level, a decision that could reshape the regulatory approach to the industry.
The initiative seeks to align cryptocurrency with federal policy, encouraging collaboration between private companies and government agencies while enhancing the legitimacy of digital assets.
What a difference an election can make. What do I mean? We went from @GaryGensler and @ewarren’s UNLAWFUL war against crypto to @realDonaldTrump establishing a Crypto Czar in @DavidSacks, a Crypto Council and elevating crypto as a policy priority on day one. And let’s not forget… https://t.co/GwOcVb1YLt pic.twitter.com/OdkMS4u8ZB
— John E Deaton (@JohnEDeaton1) January 17, 2025
Crypto Advisory Council: A New Voice for the Industry
The executive order proposes the creation of a crypto advisory council, giving industry stakeholders a platform to influence regulatory decisions. This council will ensure that businesses operating in the crypto sector have a direct role in shaping policies.
Related: Trump-Backed Crypto Project Moves $61.4M in Ethereum to Coinbase
This approach contrasts sharply with the enforcement-driven methods under former SEC Chair Gary Gensler. Additionally, the order is expected to provide new guidance to federal agencies on digital asset oversight, potentially pausing lawsuits involving cryptocurrencies during the policy review process.
Bitcoin Stockpile: A National Strategy
A standout proposal in Trump’s plan is the development of a national Bitcoin stockpile. The U.S. government, which already holds Bitcoin valued at over $20 billion, could expand its holdings and formalize Bitcoin’s role as a financial asset.
Since November, Bitcoin prices have climbed nearly 50%, driven by expectations of this move. By strengthening its position in global markets, the proposed stockpile could enhance Bitcoin’s role in both domestic and international finance.
Related: SEC Chair Gary Gensler gets pressed on crypto in his final interview with Joe Kernen
Regulatory Reforms to Boost Growth
Despite regulatory challenges under the Biden administration, the U.S. crypto industry has shown resilience, with institutions like BlackRock launching Bitcoin and Ether ETFs. Trump’s executive order is expected to create a more business-friendly environment by simplifying compliance and providing clear rules for the industry.
By introducing the advisory council, a Bitcoin stockpile strategy, and regulatory reforms, the executive order signals a more supportive stance toward the crypto sector. These measures could foster growth and attract further institutional investment.
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