According to reports, Trump intends to issue a series of executive orders and directives on various issues, including immigration and energy, on his first day in office, January 20. During his campaign, Trump expressed his support for cryptocurrencies, branding himself as a "crypto president."
The industry is now looking for him to fulfill that commitment by implementing executive orders aimed at establishing a bitcoin reserve, ensuring access to banking services for the sector, and forming a crypto advisory council.
Industry insiders are pushing for these executive actions to be taken within Trump's first 100 days, with expectations that at least one could be announced on January 20. Rebecca Rettig, chief legal and policy officer at Polygon Labs, emphasized the importance of these orders in clarifying the administration's priorities from day one and providing a clear direction.
In contrast to President Joe Biden's administration, which has imposed restrictions on crypto companies due to concerns over crime and market volatility, Trump has vowed to take a different approach. His crypto policy team is beginning to take shape, highlighted by the recent appointment of pro-crypto Securities and Exchange Commission chair Paul Atkins and White House crypto advisor David Sacks.
Brian Hughes, a spokesperson for Trump's transition team, stated that there has been a concerted effort within the Washington bureaucracy to hinder innovation, but he assured that President Trump would honor his commitment to promote American leadership in the cryptocurrency space.
Following Trump's reaffirmation of his strategic bitcoin reserve plan, bitcoin, the largest cryptocurrency, reached new heights above $107,000 this month, although it has since retreated below the $100,000 mark.
Analysts remain split on whether Trump could leverage executive powers to establish a reserve, potentially through the Treasury Department, or if congressional approval would be required. The Bitcoin Policy Institute, an industry organization, has even drafted a potential executive order for Trump to create such a stockpile.
This draft proposes designating bitcoin as a strategic reserve asset and mandates the Treasury Secretary to allocate $21 billion over the course of a year to build a national bitcoin reserve, as reported by Reuters.
Zack Shapiro, the head of policy at the Bitcoin Policy Institute, emphasized the need for the United States to take the lead in monetizing bitcoin to avoid missing out as prices rise without the country holding any reserves. He refrained from disclosing whether the draft had been shared with Trump's team.
In July, Trump expressed his intention to prevent banks from restricting crypto firms' access to the traditional financial system, and some industry leaders anticipate he will address this through an executive order. Crypto companies have long argued that banks are reluctant to engage with them due to regulatory pressures, although regulators maintain that banks can lend to compliant crypto firms.
While an executive order aimed at instructing bank regulators to adopt a more lenient approach towards crypto could signal the administration's intentions and provide political backing, some executives caution that it may lack legal authority since federal bank regulators operate independently. Jonah Krane, a partner at Klaros Group, remarked that immediate policy changes are unlikely, but the order would indicate the administration's desired direction.
Additionally, Trump has announced plans to establish a crypto industry council, and discussions are underway regarding its structure and staffing. Executives noted that previous administrations have formed specialized councils through executive orders.
Trump may also consider tackling concerns within the cryptocurrency sector regarding the inadequacy of current regulations by issuing an executive order that outlines fundamental principles for crypto regulation.
This approach would mirror a directive he provided in 2017, which instructed regulators to reassess banking regulations.
Krane noted, "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."