New President Donald Trump could kick off his term with an executive order designating crypto as a national priority.
Anonymous sources believed to have knowledge of the matter told Bloomberg that the order could create a crypto advisory council and direct government agencies to collaborate with the industry. There is a good chance that the outgoing president could sign it on January 20, they added.
Discussions are reportedly underway for the order to include a directive requiring all federal agencies to review their crypto policies, with the possibility of suspending ongoing litigation against major players in the industry.
As previously reported by crypto.news, some of these changes are expected to be led by the new SEC under Trump, led by crypto-friendly Paul Atkins.
Under the Biden administration, regulators have taken enforcement action against high-profile companies like Binance and Ripple. The regulator argued that many cryptocurrencies qualify as securities under the Howey test.
Such coercive measures and lack of regulatory clarity have made it difficult for crypto companies to operate in the United States, pushing some to explore friendlier jurisdictions abroad.
According to the sources, another consideration of the decree is the creation of a strategic Bitcoin reserve. This reserve would allow the US government to consolidate and manage its existing crypto holdings, which reportedly total nearly $20 billion, primarily in Bitcoin seized in criminal investigations.
Trump embraced the idea of making the United States a leader in crypto during his campaign, pledging to make it the “crypto capital of the world.” Supporters view the proposed Bitcoin reserve as both a hedge against inflation and a way to combat the national debt.
Bitcoin has recovered above $100,000, fueled by optimism over Trump’s planned crypto order and hopes of favorable regulatory change.
However, sources noted that the order has not been finalized and may be revised before being made public.
Market participants expect these changes to reestablish the United States as a leader in the crypto industry. Trump’s policy changes will suggest that the United States is back and ready to play a leadership role, Kara Calvert, vice president of U.S. policy at Coinbase, told Bloomberg.
“What this says to other countries is be careful, otherwise you won’t keep up,” she added.
On a related note, another report suggests Trump is considering an “US first” crypto reserve strategy, which would prioritize US-founded digital assets such as Solana, USD Coin (USDC), and Ripple’s (XRP).
