Crypto Industry Seeks Trump’s Early Action on Cryptocurrency Policy
The cryptocurrency industry is urging President-elect Donald Trump to prioritise his promised crypto policy overhaul as he takes office next month. Industry insiders hope executive orders issued during Trump’s first 100 days will push cryptocurrencies into the mainstream by addressing banking access, regulation, and innovation.
On the campaign trail, Trump positioned himself as a “crypto president,” drawing support from the sector. Now, industry officials expect at least one executive order to come as early as his inauguration day on January 20.
Pushing for a Strategic Bitcoin Reserve
Trump has pledged to reverse the regulatory crackdowns imposed under President Joe Biden. His transition team has already named crypto-friendly figures like Paul Atkins, the new SEC chair, and David Sacks, the White House crypto czar.
One proposal includes the creation of a national bitcoin reserve. The Bitcoin Policy Institute has drafted a potential executive order to designate bitcoin as a strategic asset, requiring the Treasury Department to allocate $21 billion over a year to establish a stockpile.
Zack Shapiro, head of policy at the institute, argued that the United States must act swiftly to outpace geopolitical rivals in monetising bitcoin. Analysts are debating whether such a reserve could be established by executive order or if congressional approval is necessary.
Easing Banking Access for Crypto Firms
The industry is also lobbying for executive orders to resolve banking access challenges. Crypto companies have long complained about difficulties securing services from traditional financial institutions due to regulatory scrutiny. While federal regulators insist that banks are free to work with compliant crypto firms, industry insiders hope Trump’s actions will ease regulatory pressures.
An executive order could signal a shift in policy, providing agencies with political cover to soften their approach. However, some experts, like Jonah Krane of Klaros Group, caution that independent federal regulators may not change their practices immediately, even with executive directives.
Broader Regulatory Overhaul on the Horizon
Trump’s team is also considering creating a specialised crypto industry council through an executive order. This council would address regulatory inconsistencies and advocate for clear, industry-appropriate rules.
A broader executive order could also set core principles for crypto regulation, echoing Trump’s 2017 directive to review banking rules. Such an order would outline the administration’s stance and signal its commitment to fostering innovation while addressing industry concerns.
What’s Next for Crypto Policy?
The crypto sector is closely watching Trump’s inauguration, with hopes that his administration will deliver swift action on regulatory reforms. Early executive orders could set the stage for significant shifts in how cryptocurrencies integrate into the financial system.
As Trump seeks to position the US as a global leader in digital assets, these policy changes could reshape the crypto landscape, offering a more favourable environment for innovation and growth.
with inputs from Reuters
