Cryptocurrency to Become a National Priority Under Trump

President-elect Donald Trump is preparing to issue an executive order that will focus on making cryptocurrency a national priority. According to reports, this order could be signed on January 20, Trump’s first day back in office. 

President elect Donald Trump plans to make cryptocurrency a national priority. Source: X

What Does the Executive Order Hold?

The executive order will reportedly declare cryptocurrency as a national priority. This means the government will treat digital currencies as an important issue for the economy and technology. It will guide government agencies to work more closely with the crypto industry to create better policies.

Trump also plans to create a crypto advisory council. This council will include industry representatives and policymakers. It will help make decisions about rules and policies for digital currencies, ensuring that the industry’s voice is heard.

Executive Order Could Put Crypto Company’s Legal Battle On Hold 

The executive order may also direct government agencies to review existing crypto-related policies. This could include pausing ongoing legal actions against cryptocurrency companies, particularly those that do not involve fraud allegations. Regulatory scrutiny under the Biden administration has led to over 100 enforcement actions, targeting firms such as Binance and Ripple Labs. 

Another idea under discussion is creating a national Bitcoin reserve. The U.S. government already holds nearly $20 billion worth of cryptocurrencies.

US holds nearly $20.3 billion worth of various cryptocurrencies. Source: Akhram Intelligence

This money came from cryptocurrencies seized in criminal investigations, according to data from Arkham Intelligence. The plan would allow the government to keep these holdings and possibly expand them. Supporters of the initiative believe this reserve could help with inflation and reduce national debt.

However, the details of the executive order are not final. Some parts, like pausing legal actions and creating a Bitcoin reserve, are still being discussed. Trump’s team has not officially commented on the plan.

Cryptocurrency Industry Is Celebrating Trump’s Presidency

The crypto industry has shown strong support for Trump. Companies like Coinbase and Ripple have donated to his inaugural committee. To celebrate, the industry is hosting an event called the “Inaugural Crypto Ball” just before Trump takes office.

The crypto industry is holding an inaugural ball event in honor of the swearing in of Donald Trump. Source: X

Trump has embraced cryptocurrency more in recent years. During his campaign, he promised to make the U.S. a global leader in crypto. He even attended a Bitcoin conference to promote his plans. Trump and his family have also launched projects like a non fungible token (NFT) collection and the proposed World Liberty Financial project, a financial platform for borrowing and earning digital currencies.

Trump’s plans are very different from the policies of President Joe Biden. During Biden’s term, regulators were tough on the crypto industry. Agencies investigated cases like the FTX bankruptcy and made it hard for crypto firms to work with banks. Trump’s approach aims to reduce these restrictions and support the industry.

Bitcoin Booms on Trump Optimism, But Will It Last?

Bitcoin prices have risen since Trump won the election in November. The price of Bitcoin has jumped by nearly 50%, going over $100,000 and reaching an all time high of $108,135. Many investors believe Trump’s policies will create a friendlier environment for crypto in the U.S. However, some traders are waiting to see if Trump will follow through on his promises before making big investments.

According to Samara Cohen, BlackRock’s ETF and index instruments chief investment officer, the cryptocurrency could experience another historic year under Trump’s leadership. Speaking to CNBC’s “ETF Edge,” Cohen explained that deregulation and progress on key legislation would drive Bitcoin’s growth.

Cohen oversees BlackRock’s iShares Bitcoin Trust (IBIT), which has seen good growth since its launch in January 2024. The ETF has risen 114% since its debut and is up nearly 8% so far this year. 

Despite the strong performance, Cohen cautions that Bitcoin remains a volatile asset. “Bitcoin is a risky asset. So, 15% in the context of Bitcoin is not an enormous move. Investors should expect volatility,” she noted.

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