Trump reportedly intends to issue a series of executive actions addressing various issues, ranging from immigration to energy, as soon as he assumes the presidency on January 20th, according to reports.
During his campaign, Trump actively sought support from the crypto community by promising to be a “crypto president.” The industry is now requesting that he follow through on these promises by enacting executive orders to establish a national Bitcoin reserve, guarantee the industry’s access to banking services, and create a dedicated cryptocurrency advisory council.
These industry stakeholders are advocating for these executive orders to be implemented within Trump’s initial 100 days in office, with expectations that at least one could be issued as early as January 20th, according to sources familiar with the matter.
“Given the campaign’s rhetoric, it’s crucial for executive orders to clearly outline the administration’s priorities from day one and provide a roadmap,” stated Rebecca Rettig, Chief Legal and Policy Officer at Polygon Labs, a crypto firm.
President Joe Biden’s administration, citing concerns about crime and market volatility, has taken a restrictive approach towards crypto companies. Trump, however, has vowed to reverse this course. His team is already being formed, including the recent appointment of Paul Atkins, a crypto-friendly individual, as Securities and Exchange Commission chair, and David Sacks as a White House crypto advisor.
Brian Hughes, a spokesperson for the Trump transition team, affirmed that “There has been an attempt within the Washington bureaucracy to stifle innovation… President Trump will fulfill his promise to promote American leadership in the crypto space.”
Bitcoin, the leading cryptocurrency, recently reached record highs above $107,000 this month, following Trump’s reaffirmed commitment, initially made in July, to establish a strategic Bitcoin reserve. However, Bitcoin has since experienced a price correction, falling below $100,000.
Experts are divided on whether Trump can create the reserve through executive authority, potentially involving the Treasury Department, or if congressional action would be necessary.
The Bitcoin Policy Institute, an industry advocacy group, has even prepared a draft executive order that Trump could use to establish such a stockpile.
The draft proposes designating Bitcoin as a strategic reserve asset and directing the Treasury Secretary to allocate $21 billion over one year to build a national Bitcoin reserve, based on the draft reviewed by Reuters.
Zack Shapiro, the Bitcoin Policy Institute’s head of policy, emphasized the importance of the United States taking the lead in monetizing Bitcoin before geopolitical competitors do, “rather than have the price run up without the United States having any reserves.” He declined to confirm whether the group had shared the draft with Trump’s team.
Trump also stated in July that he would not allow banks to “choke” crypto firms’ access to the traditional financial system. Some executives anticipate that he will address this issue through an executive order as well. Crypto companies have long complained about difficulties in securing banking services due to regulatory scrutiny, though regulators maintain that banks can work with crypto firms that comply with regulations.
While an executive order instructing bank regulators to ease restrictions on crypto could signal a shift in policy direction and provide political backing, its legal enforceability is uncertain, as federal bank regulators operate independently, some executives cautioned.
“(They) are not going to change policy on the ground on day one,” said Jonah Krane, partner at financial firm Klaros Group. “But they will tell you what direction this administration wants to head.”
Trump has also announced plans to create a crypto industry council, and his team is currently exploring its structure and staffing. Industry experts note that previous administrations have established similar councils through executive orders.
More broadly, Trump could address industry concerns about the suitability of existing regulations for the crypto sector by issuing an executive order outlining core principles for crypto regulation, similar to an order he issued in 2017 directing regulators to review banking rules.
“I wouldn’t be surprised if you get something like an executive order early on that directs the agencies to re-examine their rules in this space,” Krane added.