President-elect Donald Trump is preparing an executive order that will elevate cryptocurrency to a national policy priority, giving industry leaders a significant role in shaping his administration's approach, according to sources familiar with the matter.
The forthcoming order is expected to declare cryptocurrency a national imperative, using strategic language to encourage government agencies to collaborate with the industry. Additionally, the order is anticipated to establish a crypto advisory council to advocate for the sector’s policy objectives, the sources, who requested anonymity due to the sensitive nature of the information, have indicated.
Trump has garnered substantial support from the cryptocurrency industry, which wields considerable influence in Washington through well-funded political action committees. Companies such as Coinbase and Ripple have recently made significant contributions to Trump’s inaugural committee. The industry is also hosting an “Inaugural Crypto Ball” in his honor just days before his inauguration.
This executive order would represent a dramatic shift in policy from President Joe Biden’s administration, which targeted the crypto industry with numerous investigations following several high-profile fraud cases, including the collapse of the FTX exchange. Over the past few years, agencies like the Securities and Exchange Commission have initiated more than 100 enforcement actions against the crypto sector, while banking regulators have made it challenging for crypto firms to collaborate with financial institutions.
The executive order is also expected to include directives for all government agencies to review policies on digital assets and potentially pause ongoing litigation against crypto companies. This could halt legal actions against major players like Binance Holdings Ltd. and Ripple Labs Inc., which the industry considers a top priority.
Another proposal under consideration is the creation of a national Bitcoin reserve, consolidating the government’s existing holdings of the cryptocurrency, which were seized during various investigations. Currently, the US government possesses nearly $20 billion worth of Bitcoin, according to analytics firm Arkham. Bitcoin’s price has surged by nearly 50%, surpassing $100,000 since the November election, partly due to speculation about this potential stockpile. The cryptocurrency has more than doubled in value over the past year.
The sources cautioned that the executive order, which could be announced as early as Monday, remains subject to change. A spokesperson for Trump did not immediately comment on the matter.
Trump has pledged to issue a series of executive orders across various industries and issues within his initial days in office.
“This move by Donald Trump signals that the United States is ready to lead the cryptocurrency industry,” said Kara Calvert, Vice President for US Policy at Coinbase Global Inc., the largest cryptocurrency exchange in the country. “It sends a message to other nations: keep up or risk falling behind.”
Despite regulatory challenges during Biden’s presidency, the US crypto industry has continued to grow. Prominent financial firms, including BlackRock Inc., the world’s largest asset manager, launched Bitcoin and Ether exchange-traded funds last year. BNY Mellon has been expanding its crypto custody services, and Cantor Fitzgerald recently announced plans to launch a Bitcoin financing business.
Trump demonstrated strong support for the crypto industry during his presidential campaign, headlining a Bitcoin conference in July where he vowed to make the US the global leader in cryptocurrency. He has also been involved in releasing Trump-branded nonfungible tokens for several years and, along with his sons, announced the creation of World Liberty Financial, a crypto initiative aimed at enabling users to earn and borrow crypto, though it has yet to deliver on these promises.
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