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In what is shaping up to be one of the most significant policy shifts for digital assets in recent years, President-elect Donald Trump is set to make cryptocurrency a central focus of his administration starting on Day One.
According to sources familiar with the plans, the executive order will prioritize the development of digital assets as a national policy area and lay the groundwork for a significant regulatory shift in favor of the crypto industry, Bloomberg reported.
The upcoming order is expected to usher in a new era of pro-crypto governance, marking a dramatic pivot from the regulatory stance of the outgoing Biden administration. While President Biden’s tenure saw increased scrutiny and legal actions against the crypto sector, Trump’s initiative signals a clear shift toward supporting innovation in the digital asset space and positioning the United States as a global leader in crypto policy.
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Crypto as a Central Policy Focus
The executive order will focus on integrating digital assets into the U.S. economy in a structured and regulated way. It is expected to establish a national framework for cryptocurrency, with provisions that may include the creation of a new crypto advisory council to ensure the industry has a direct voice in shaping federal policy. This marks a significant step in fostering collaboration between the government and the private sector, as the Trump administration looks to promote U.S. leadership in the growing digital economy.
A key part of the executive order will be a mandate for federal agencies to review and update their digital asset policies, providing clarity and consistency for businesses and investors in the sector. The move is expected to create a more stable environment for crypto firms to operate, removing the ambiguity that has previously hampered innovation.
Shift from the Biden Administration’s Regulatory Approach
The decision to prioritize crypto comes at a time when the U.S. crypto industry has faced significant regulatory challenges. Under President Biden, federal agencies imposed over 100 enforcement actions against crypto companies, with high-profile cases like the bankruptcies of FTX and other major exchanges leading to increased scrutiny. Additionally, Biden's administration implemented policies that made it harder for crypto firms to access banking services, resulting in what many viewed as a stifling environment for the industry.
Trump’s plan to reverse these trends reflects his broader vision of reducing regulatory burdens and fostering economic growth through innovation. By prioritizing cryptocurrency, he aims to revitalize the U.S. as a crypto hub and encourage investment and job creation in the sector.
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Creating a National Crypto Reserve
One of the most significant elements of the executive order is the potential establishment of a national Bitcoin reserve. Sources indicate that the U.S. government may consolidate as much as $20 billion in Bitcoin seized through federal investigations into a formal reserve. This move would not only bolster the U.S. government’s standing in the global digital asset market but also provide a foundation for future economic and financial strategies involving cryptocurrency.
With Bitcoin’s value having surged dramatically in recent years, the creation of a government-backed reserve could also enhance the U.S. Treasury’s capacity to engage with digital assets as part of broader economic policy. The national reserve could set the stage for further integration of crypto into mainstream financial systems, allowing the U.S. to capitalize on the growing demand for digital currencies.
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Industry-Friendly Regulatory Environment
The executive order is also expected to address one of the most pressing concerns for the crypto community: legal uncertainty. Sources suggest that the order may pause ongoing litigation against prominent firms like Ripple Labs and Binance, which have faced regulatory actions under the Biden administration.
This would provide relief to companies mired in legal battles, allowing them to focus on innovation and growth rather than defending themselves against government enforcement.
Industry’s Growing Influence
The crypto industry’s growing influence on U.S. politics is exemplified by the “Inaugural Crypto Ball,” which will take place on Friday in Washington, D.C. The black-tie event is a high-profile gathering of crypto executives, investors, and enthusiasts, with tickets priced at up to $1 million for a private dinner with the president-elect.
Major crypto firms like Circle, Coinbase, Kraken, and MicroStrategy have all signed on as sponsors, underscoring the level of support Trump’s pro-crypto policies enjoy within the sector.
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‘America First’ Digital Assets Strategy
While the pro-crypto executive orders have been largely celebrated, not all aspects of Trump’s strategy are without controversy. One of the more debated proposals is the creation of an “America First” digital asset reserve, which would prioritize U.S.-based cryptocurrencies like Solana, USDC, and XRP. This idea has raised concerns within the industry, with some insiders arguing that it could undermine Bitcoin’s position as the leading digital asset, Coindesk reported.
Nevertheless, Trump’s willingness to engage with key figures behind these coins suggests that his administration is willing to support a wide range of digital assets, not just Bitcoin. Sources close to the Trump campaign indicate that discussions are already underway about potentially incorporating this “America First” strategy into the executive orders, the New York Post reported, though it remains unclear whether it will be finalized in the initial round of policies.
