Trump: Cryptocurrency a national priority
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On January 17, according to a Bloomberg report, cryptocurrencies have been listed as a national "priority" by Trump. According to sources, this strategic wording is intended to guide government agencies to cooperate with the industry. Sources say the executive order also plans to establish a cryptocurrency advisory council to advocate for the industry's policy priorities.
Trump has received strong support from the cryptocurrency industry, which has a powerful influence in Washington and is backed by well-funded political action committees. In recent months, many companies including Coinbase and Ripple have donated to Trump's inauguration committee. On Friday, just days before the inauguration, the industry will host an "Inaugural Crypto Ball" to support Trump.
This executive order will mark a major shift for cryptocurrencies, which have been the subject of investigations during President Joe Biden's tenure, following a series of high-profile fraud cases including the FTX exchange collapse. In recent years, federal agencies including the SEC have brought over 100 enforcement actions against the industry, and banking regulators have made it difficult for cryptocurrency companies to work with financial institutions.
Sources say discussions are ongoing on whether to include a directive in the executive order requiring all government agencies to review policies related to digital assets and potentially pause any litigation involving cryptocurrencies. Halting legal actions against a range of companies from Binance Holdings Ltd. to startup Ripple Labs Inc. is a top priority for the industry.
The government is also considering establishing a national Bitcoin reserve, which would include the largest cryptocurrency currently held by the government. According to analytics firm , the U.S. government currently holds nearly $20 billion worth of Bitcoin, confiscated in various investigations. Bitcoin has risen nearly 50% since the November election to over $100,000, partly on hopes of establishing such a Bitcoin reserve. By 2024, the Bitcoin price could more than double.
Sources warn the executive order may be released as early as Monday, but is not a final version and could change before being announced. A Trump spokesperson did not immediately respond to a request for comment.
Trump has vowed to issue a series of executive orders on a range of different industries and issues in his first few days in office.
is back, and we're ready to lead in this industry. It's a signal to other countries: Be careful, or you're going to be left behind.">
Despite regulatory setbacks during the Biden administration, cryptocurrency in the U.S. continues to expand, with major financial firms including the world's largest asset manager BlackRock launching spot and exchange-traded funds last year. New York Bank has been working to expand its custody business, and Cantor Fitzgerald announced plans to launch a lending business.
Trump expressed support for the cryptocurrency industry during his presidential campaign last year. In July, he hosted a conference and pledged to make the U.S. the world capital of . For years, Trump-branded non-fungible tokens have been continuously released, and last year he and his sons announced the creation of a cryptocurrency company called "World Liberty Financial" aimed at allowing people to earn and borrow , though these services have not yet been provided.
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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