Trump's Executive Order to Elevate Crypto as National Priority A Shift in US Policy

January 17, 2025 11:00 AM AEDT | By Team Kalkine Media
 Trump's Executive Order to Elevate Crypto as National Priority A Shift in US Policy
Image source: shutterstock

Highlights

  • Trump plans to elevate cryptocurrency to a national priority with an executive order.
  • A crypto advisory council is set to be formed to advocate for the industry’s policy priorities.
  • Consideration of creating a national bitcoin stockpile, reflecting a major shift in US crypto strategy.

The US cryptocurrency industry is on the verge of a significant transformation as President-elect Donald Trump prepares to release an executive order making crypto a national priority. Sources familiar with the matter indicate that the order will place strategic importance on the industry, pushing government agencies to engage more proactively with crypto companies. Additionally, the creation of a crypto advisory council is being discussed to advocate for the sector’s policy concerns within the administration.

This move comes at a time when cryptocurrency has faced heightened scrutiny under President Joe Biden's administration. The collapse of major players, such as the FTX exchange, and various regulatory actions, including more than 100 enforcement actions by the Securities and Exchange Commission, have shaped the current environment. The crypto industry has also struggled with limitations placed on its ability to work with financial institutions, making Trump’s proposal a pivotal shift.

Reforms Under Consideration in the Executive Order

The executive order, while still under development, is expected to have broad implications for how crypto is regulated and approached by government agencies. One potential provision under discussion is a directive for all federal agencies to review their policies on digital assets, which could lead to a pause in ongoing legal actions. Legal cases involving major industry players, including Binance and Ripple Labs, have raised concerns within the sector, and halting such litigation could be seen as a relief for many companies.

Furthermore, Trump’s order may address the idea of establishing a national bitcoin stockpile. Currently, the US government holds nearly $20 billion worth of bitcoin, largely seized during investigations. With bitcoin prices surging, this proposal has generated significant interest, especially as the asset rallies following the November election. Analysts see the creation of a national stockpile as a potentially significant development for both the cryptocurrency market and the broader financial landscape.

The Crypto Landscape Under Trump Strategic Moves for Global Leadership

The proposed changes reflect a shift in policy direction, signaling that the US could be positioning itself as a leader in the global cryptocurrency space. Trump’s previous statements and actions during his campaign suggest a favorable stance toward crypto. He expressed his intent to make the US the crypto capital of the world and highlighted the industry’s potential to drive innovation and economic growth.

Under Trump, even amid regulatory challenges, the US crypto sector has seen growth. Major financial institutions, such as BlackRock, launched bitcoin and ether exchange-traded funds (ETFs) last year, and companies like BNY Mellon and Cantor Fitzgerald are increasingly involved in crypto-related ventures, from custody services to bitcoin financing. Trump's push to elevate crypto within the government could further propel the sector’s expansion, particularly as global competitors work to keep pace with the evolving US approach.

A Transformative Era for Cryptocurrency in the US

As the crypto market continues to mature, Trump's proposed executive order marks a potential turning point in the relationship between the US government and the digital asset industry. The creation of a crypto advisory council, alongside a reassessment of existing policies and legal actions, could pave the way for a more favorable environment for crypto companies. With the ongoing evolution of crypto infrastructure and financial products, such as ETFs and custody solutions, the US may be positioning itself for a new era of leadership in the cryptocurrency sector.

While the details of the executive order are still being finalized, the conversation around cryptocurrency in the US is undoubtedly shifting. For now, the industry watches closely as these developments unfold, understanding that they could set the stage for substantial growth and innovation in the coming years.


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