Trump to Issue Executive Order Elevating Cryptocurrency to National Priority, Bitcoin Surges Past $100,000

Trump to Issue Executive Order Elevating Cryptocurrency to National Priority, Bitcoin Surges Past $100,000According to sources cited by media outlets, President-elect Donald Trump plans to issue an executive order upon his inauguration next Monday, elevating cryptocurrency to a national priority and granting cryptocurrency industry figures a voice within his administration. This news spurred a significant surge in Bitcoin's price during Friday's Asian trading session, pushing it past the $100,000 mark, with the latest price hovering around $101,600

Trump to Issue Executive Order Elevating Cryptocurrency to National Priority, Bitcoin Surges Past $100,000

According to sources cited by media outlets, President-elect Donald Trump plans to issue an executive order upon his inauguration next Monday, elevating cryptocurrency to a national priority and granting cryptocurrency industry figures a voice within his administration. This news spurred a significant surge in Bitcoin's price during Friday's Asian trading session, pushing it past the $100,000 mark, with the latest price hovering around $101,600.

Sources say the executive order will classify cryptocurrency as a national imperative or priority, a strategic wording aiming to foster collaboration between government agencies and the cryptocurrency industry. Furthermore, the order reportedly plans to establish a cryptocurrency advisory council tasked with advocating for the industry's policy priorities.

Trump currently enjoys strong support from the US cryptocurrency industry, which boasts significant influence in Washington and backing from well-funded political action committees. Several cryptocurrency companies, including Coinbase and Ripple, have donated to Trump's inaugural committee in recent months. A Trump Inaugural Cryptocurrency Ball is also slated for this Friday, the eve of Trump's inauguration, showcasing industry support.

A Dramatic Shift: From Government Scrutiny to National Priority

Analysts point out that the executive order, if enacted, would mark a dramatic shift for the cryptocurrency industry. Under the Biden administration, cryptocurrency faced government scrutiny and a series of high-profile fraud cases, such as the FTX exchange collapse. Federal agencies, including the Securities and Exchange Commission (SEC), launched over 100 enforcement actions against the industry in recent years, while strict bank regulations made it difficult for cryptocurrency companies to partner with financial institutions.

Sources indicate that an instruction under consideration for the executive order is a mandate for all government agencies to review policies regarding digital assets, potentially including a pause on any ongoing litigation involving cryptocurrencies. Advocates argue that halting legal battles against a range of crypto companiessuch as Binance, the world's largest cryptocurrency exchange, and startup Rippleis a critical priority for the industry.

Furthermore, the establishment of a national Bitcoin reserve is also under consideration. This reserve would encompass the substantial amount of Bitcoin currently held by the US government, estimated by analytics firm Arkham to be worth nearly $20 billion, confiscated during various investigations. Since the November election, Bitcoin has risen nearly 50%, surpassing $100,000, partly fueled by bullish expectations of such a strategic reserve.

Executive Order Timeline and Potential Impact

Sources caution that the executive order could be released as early as next Monday, but the current draft is not final and may change before its release. Trump has previously vowed to issue a series of executive orders targeting various industries and issues in his first few days in office.

Kara Calvert, Vice President of US Policy at Coinbase, stated, I think the signal that Trump is going to send is that America is back, and we're ready to lead this industry. It also sends a signal to other countries: watch out, or you're going to fall behind.

Despite regulatory setbacks under Biden, the US cryptocurrency market continues to expand. Major financial firms, including BlackRock, the worlds largest asset manager, launched spot Bitcoin and Ether ETFs last year. Bank of New York Mellon has been actively expanding its cryptocurrency custody business, while Cantor Fitzgerald announced plans to launch a Bitcoin financing business.

Trump and Cryptocurrency: From Campaign Promises to Action

During last year's presidential campaign, Trump expressed considerable enthusiasm for the cryptocurrency industry, pledging to make the US the world's cryptocurrency capital. A non-fungible token (NFT) series bearing his name has been available for several years. Last year, he and his sons announced a cryptocurrency project called World Liberty Financial, aiming to enable people to earn and borrow cryptocurrencies, though these services have not yet officially launched.

Samara Cohen, Chief Investment Officer of ETFs and Index Strategies at BlackRock, commented that easing cryptocurrency regulations would absolutely propel Bitcoin into another historic year.

Conclusion: Policy Shift and Market Impact

Trump's upcoming executive order signals a potential major shift in the US government's approach to cryptocurrency. This change, from relatively stringent regulation to potentially supportive and collaborative policies, will have far-reaching implications for the global cryptocurrency market. The surge in Bitcoin's price reflects the market's positive anticipation of this policy shift. However, the final content of the executive order remains uncertain, and investors should closely monitor further developments. If the executive order is issued as anticipated and implemented successfully, it could further stimulate the cryptocurrency industry and solidify the US's leading position in the global cryptocurrency landscape. Conversely, significant discrepancies between the executive order's content and expectations, or implementation obstacles, could negatively impact the market. Therefore, investors should exercise caution and fully understand the associated risks when making investment decisions. Market volatility may increase in the coming period, requiring investors to closely monitor market dynamics and adjust their investment strategies accordingly. All parties should also closely monitor the specific content of this executive order and its subsequent implementation to better understand market trends. Policy uncertainty remains, and investors need to be cautious and invest rationally. Any investment decision should be based on one's own risk tolerance and assessment of the market situation; avoid blindly following the trend.