Trump Plans Executive Order to Make Crypto a National Priority
President-elect Donald Trump is reportedly preparing to sign an executive order on January 20 that will elevate cryptocurrency as a national priority, according to Bloomberg. The order is expected to direct federal agencies to collaborate with the industry and establish a cryptocurrency advisory council to advocate for policy changes.
Trump’s pro-crypto stance has gained strong support within the industry, particularly due to his pledges to fire SEC Chair Gary Gensler and review regulatory actions against digital asset firms. Several major players in the crypto sector have contributed significantly to his inauguration fund.
Regulatory Shift and Policy Goals
The executive order could signal a major shift in the U.S. government’s approach to digital assets, following years of aggressive regulatory actions. The SEC has pursued over 100 lawsuits against crypto companies, while banking regulators have made it more difficult for firms to access traditional financial services.
Sources suggest the order may require federal agencies to reassess their policies on digital assets, with discussions ongoing about potentially suspending or withdrawing certain legal actions. Initial policy changes under Trump’s administration could address issues like debanking crypto companies and revising accounting rules, such as the controversial Staff Accounting Bulletin (SAB) 121.
Additionally, reports indicate the administration is considering the creation of a national Bitcoin reserve. However, rumors that Trump plans to form a strategic reserve of altcoins like XRP, SOL, and USDC have been dismissed by sources close to the matter. Ripple’s Senior Director of Communications, Susan Hendrick, confirmed that CEO Brad Garlinghouse had encouraged Trump to diversify potential reserves beyond Bitcoin, but there is no official confirmation of such plans.
Market Reaction and Industry Response
Trump’s crypto-friendly stance has already influenced market trends. Following speculation about XRP’s inclusion in a national reserve, the token surged to its highest price since 2018. Analysts from Santiment attributed the price increase to significant whale accumulation, with wallets holding 1 million to 10 million XRP adding 1.43 billion coins since November.
Despite Trump’s support for the industry, Bitcoin continues to trade at a slight discount on Coinbase compared to Binance, signaling moderate demand in the U.S. Analysts from K33 Research have suggested that Trump’s inauguration may already be ”overpriced” in the market, with expectations of major crypto policy shifts potentially baked into current valuations.
With the executive order expected to be signed on Inauguration Day, industry leaders are closely watching how Trump’s policies will shape the future of crypto regulation in the U.S.
Featured image from: coinpaper.com