The crypto industry has initiated lobbying efforts for the approval of a U.S. Bitcoin 
$92,591 reserve, coinciding with President Donald Trump’s inauguration on January 20. Reports indicate that Trump plans to issue various executive orders from day one, while leaders in the cryptocurrency sector aim to implement significant crypto directives.
Approval of U.S. Bitcoin Reserves
Following Trump’s assumption of office, the crypto industry is urging the new administration to create a crypto-friendly regulatory environment in line with campaign promises. There are high hopes in the industry as Trump identifies himself as the “crypto president.”
The Bitcoin Policy Institute, an advocate for the crypto industry, has proposed a draft outlining how the reserve could be established. This proposal envisions the creation of a strategic Bitcoin reserve asset and calls for the Treasury Secretary to allocate $21 billion within a year to form a national Bitcoin reserve.
Crypto Policy Developments
In July, Trump announced the end of Operation Choke Point, which targeted crypto firms by traditional banks. An executive order directing bank regulators to adopt a more flexible approach towards cryptocurrencies may clarify the administration’s stance and provide political protection to agency officials.
“(Executive orders) will not change policy from day one. Yet, they’ll indicate the direction of the administration.” – Jonah Crane, Partner at Klaros Group
“The U.S. must act now instead of allowing prices to skyrocket.” – Zack Shapiro, Policy Head at Bitcoin Policy Institute
“Efforts to stifle innovation have existed in Washington… However, President Trump will fulfill the promise to promote U.S. crypto leadership.” – Brian Hughes, Trump Transition Team Head
The crypto industry anticipates the announcement of at least one executive order within the first 100 days of Trump’s presidency. There is curiosity about whether a federal Bitcoin reserve will be established through the Treasury or if such a move would require Congressional approval.
The sector believes that the U.S. efforts to create a Bitcoin reserve are crucial for competing with other crypto-friendly nations. Countries like Bhutan, Hong Kong, Germany, and the Czech Republic are already taking steps in this direction, while the current Biden administration’s contrary stance has led to negative market sentiment.
In the complex regulatory landscape, ensuring crypto companies’ access to banking services and establishing a dedicated crypto board are among the other significant steps the industry expects from Trump. If realized, these measures could position the U.S. more prominently within the crypto market.
The crypto industry’s efforts to establish Bitcoin reserves under Trump’s administration could strengthen the country’s leadership role in the cryptocurrency sector. However, for these efforts to succeed, executive orders must be legally supported and aligned with Congressional approval.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
