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America's new (but also very familiar) president, who previously had reservations about cryptocurrency, is now preparing to issue an executive order that will prioritize crypto policy and give influential members of the industry a voice in his government.
Donald Trump's directive will likely use strategic language designating cryptocurrency as a national imperative or priority to direct government institutions to collaborate with the industry.
The government is also expected to establish a crypto advisory council to promote the industry's policy goals.
Trump has received substantial backing from the cryptocurrency business, which is well-represented in Washington and has well-funded PACs.
Numerous corporations, such as Ripple and Coinbase, have recently contributed to Trump's inaugural committee.
The business community threw an "Inaugural Crypto Ball" on Friday to show its support for Trump, just days before Monday's inauguration.
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Several prominent fraud cases, including the downfall of the FTX exchange, have rendered cryptocurrencies a focal point of inquiry during Joe Biden's administration; Trump's executive order would signify a substantial transformation in this domain.
Federal agencies, notably the Securities and Exchange Commission (SEC), have initiated over a hundred enforcement actions against the industry in recent years. Banking regulators have impeded crypto companies' ability to partner with financial institutions.
Rumor has it that the presidential order may include a directive for all federal agencies to reconsider digital asset regulations and maybe even stop cryptocurrency-related lawsuits.
Legal actions targeting many organizations, such as Ripple Labs, a startup, and Binance Holdings, the biggest cryptocurrency exchange globally, are of the utmost importance to the industry.
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Expectations that Ripple Labs' long-running dispute with the US Securities and Exchange Commission could soon be resolved drove the price of its coin, XRP, to a record high of $3.40 on Thursday.
A national Bitcoin reserve, encompassing the government's existing holdings of the world's largest cryptocurrency, is also under consideration.
Analytics firm Arkham reports that the United States government possesses around $20 billion in Bitcoin confiscated throughout various investigations.
The potential establishment of such a stockpile has fueled Bitcoin's over 50% surge following the November election. In 2024, the token's value surged by over 100% and hit its all-time high of $109,356 in the lead up to the Trump's inauguration.
Speculation about potential executive orders or regulatory shifts under Trump’s leadership had turbocharged crypto prices in the months leading up to the inauguration. Many in the industry had hoped for immediate action, such as the establishment of a Bitcoin strategic reserve or a framework for regulatory clarity. However, insiders caution that such developments are likely to unfold gradually.
In his first few days back in office, Trump plans to sign several executive orders tackling various industries and problems.
However, despite heightened expectations, the crypto industry did not find prominence on Day One. Bitcoin surged past $106,500 as the inauguration unfolded, fueled by speculative hopes that Trump’s administration would immediately champion digital assets. But the rally was short-lived. As Trump's speech concluded without mention of cryptocurrency or a strategic Bitcoin reserve, BTC pulled back sharply to $100,500, a 6% intraday decline, and currently sits at $102,400.
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Major financial institutions, including BlackRock, the world's largest asset management firm, introduced spot Bitcoin and Ether exchange-traded funds (ETFs) last year, contributing to the growth of cryptocurrency in the US despite regulatory hurdles under Biden.
BNY is beefing up its Bitcoin custody programs, and Cantor Fitzgerald has revealed plans to launch a Bitcoin financing business.
Even though he ran for president last year, Trump nevertheless supported the cryptocurrency industry. When Trump spoke as the keynote speaker at a Bitcoin conference in July, he promised to make America the centre of the cryptocurrency world.
The Trump family has been releasing collections of non-fungible tokens (NFTs) for some time now. Last year, the president and his sons announced World Liberty Financial, a cryptocurrency initiative that would allow people to earn and borrow bitcoin.
However, the services promised by this venture have not been implemented yet.
Notwithstanding years of hostility with legislators in Washington, DC, executives from cryptocurrency firms such as Exodus, Kraken, and Crypto.com participated in the crypto inauguration event on Friday.
Despite its reputation as an outcast, Kraken's name and emblem were prominently displayed throughout the Washington cryptocurrency gala.
The crypto event, among other Washington celebrations preceding Trump's Monday inauguration, signifies a remarkable reversal for an industry targeted by the Biden administration.
After FTX's demise two years ago, it seemed like it was about to go extinct.
While Trump did not attend the event, the ball's website indicated that general admission tickets sold out at $2,500 each, but VIP packages, priced at $100,000, offered attendees the opportunity for personal interaction with tech entrepreneur David Sacks, who is set to become Trump's crypto czar and served as the gala's emcee.
Sacks roared, "The reign of terror against crypto is over."
Trump Admin Crypto Tzar DAVID SACKS:
— Eric Trump (@EricTrump) January 18, 2025
“The reign of terror against crypto is over, and the beginning of innovation in America for crypto has just begun.”
Let’s go! @Bitcoin @Worldlibertyfi $Trump pic.twitter.com/rxcIyzWQ7m
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Elsewhere
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Events
BRN Joins Money FM 89.3's 'Money Matters: The Wealth Tracker' (5:10 pm SGT on 23 January)
BRN analyst Valentin Fournier will discuss how the crypto markets are expected to shape up in 2025 on Money FM 89.3's Wealth Tracker segment.
The discussion will explore the dynamic landscape of digital assets in 2024, focusing on key growth periods in March and November and their influence on investor expectations for 2025.
Speaking to host Hongbin Jeong, Fournier will evaluate whether opportunities remain for investing in digital assets, alongside key picks and associated risks for navigating this evolving market.
Tune in here.
Consensus (Hong Kong, 18-20 February)
Consensus is heading to Hong Kong, bringing together the industry’s most important voices from East and West for pivotal conversations and deal-making opportunities.
Consensus Hong Kong convenes global leaders in tech and finance to debate pressing issues, announce key developments and deals, and share their visions for the future.
Use promo code BLOCKDESK20 at checkout for a 20% discount on tickets here.
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