Trump Plans Executive Order Elevating Crypto to National Priority, Bitcoin Surges Past $100,000

Trump Plans Executive Order Elevating Crypto to National Priority, Bitcoin Surges Past $100,000According to sources cited by media outlets, President-elect Trump plans to issue an executive order on his first Monday in office elevating cryptocurrencies to a national priority and giving cryptocurrency industry figures a voice within his administration. This news has significantly boosted market confidence, causing Bitcoins price to surge dramatically during the Asian trading session on Friday, breaking through the $100,000 mark and currently hovering around $101,600

Trump Plans Executive Order Elevating Crypto to National Priority, Bitcoin Surges Past $100,000

According to sources cited by media outlets, President-elect Trump plans to issue an executive order on his first Monday in office elevating cryptocurrencies to a national priority and giving cryptocurrency industry figures a voice within his administration. This news has significantly boosted market confidence, causing Bitcoins price to surge dramatically during the Asian trading session on Friday, breaking through the $100,000 mark and currently hovering around $101,600.

Sources reveal the executive order will explicitly designate cryptocurrencies as a national imperative or priority. This strategic wording aims to foster collaboration between government agencies and the cryptocurrency industry to drive industry growth. The order also plans to establish a cryptocurrency advisory board responsible for advocating for the industry's policy priorities, ensuring its voice is effectively communicated to government decision-makers.

Trump has enjoyed significant support from the US cryptocurrency industry. The industry boasts considerable influence in Washington, backed by well-funded political action committees. Numerous cryptocurrency companies, including Coinbase and Ripple, have donated to Trump's inaugural committee in recent months, actively expressing their support. A "Trump Inaugural Crypto Ball" is being held this Friday, the eve of his inauguration, further showcasing the industrys support and anticipation.

A Sea Change: From Regulatory Storm to National Strategy

Analysts point out that this executive order would mark a seismic shift for the US cryptocurrency industry. Under the Biden administration, the industry faced intense scrutiny and investigations from the US government, with high-profile fraud cases like the FTX collapse exacerbating regulatory pressure. Federal agencies, including the Securities and Exchange Commission (SEC), have launched over 100 enforcement actions against the industry in recent years, while stringent bank regulations have hampered cryptocurrency companies' ability to collaborate with traditional financial institutions.

Sources suggest the executive order may include a directive requiring all government agencies to review policies related to digital assets and potentially halt any ongoing litigation involving cryptocurrencies. Advocates see this as crucial for the industry, as ending lawsuits against companies like Binance, the world's largest cryptocurrency exchange, and Ripple would significantly improve the operating environment and reduce legal risks and disputes.

Even more notably, the creation of a national Bitcoin reserve is under consideration. This reserve would encompass the substantial amount of Bitcoin already held by the US government, estimated by analytics firm Arkham to be worth nearly $20 billion, confiscated during various investigations. Since the November election, the Bitcoin price has increased nearly 50% to surpass $100,000, partly fueled by bullish expectations of such a strategic Bitcoin reserve.

Uncertainty Regarding the Executive Order's Release Date and Content

Sources caution that while the executive order could be released as early as next Monday, the current draft is not final and may undergo changes before its publication. Trump has previously pledged to issue a series of executive orders addressing various sectors and issues within his first few days in office.

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

Despite regulatory setbacks under the Biden administration, the US cryptocurrency market continued to expand. Major financial companies, including BlackRock, the world's largest asset manager, launched spot Bitcoin and Ether ETFs last year, while BNY Mellon is actively expanding its cryptocurrency custody services, and Cantor Fitzgerald announced plans for a Bitcoin financing business. These actions demonstrate the enduring institutional interest in the cryptocurrency market, even amidst regulatory uncertainty.

Trump's History with Cryptocurrencies

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, and last year, he and his sons announced a cryptocurrency project called World Liberty Financial, aimed at enabling people to earn and borrow cryptocurrencies, although these services haven't launched yet.

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

The potential impact of this executive order is enormous. It would not only reshape the regulatory landscape of the US cryptocurrency industry but could also have profound effects on the global cryptocurrency market. Developments over the next few days will be closely watched, with the market keenly observing the final content of the executive order and its impact on Bitcoin's price and the broader cryptocurrency market. This move has sparked intense industry discussion and speculation about the future regulatory environment and market trajectory, and its influence will continue to ferment. The Trump administration's policy direction in this area will undoubtedly significantly impact the future development of global digital assets.