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Highlights
- Crypto industry want Donald Trump to establish a federally-backed U.S. Bitcoin reserve in Q1 2025.
- Other agenda points also include ensuring banking access for crypto companies, and creating a dedicated crypto council
- The Bitcoin Policy Institute has proposed a draft suggesting $21 billion allocation to build the reserve.
The crypto industry has already started lobbying behind President-elect Donald Trump to approve a US Bitcoin reserve as soon as he takes office on January 20. As per the previous reports, Trump is willing to issue several executive orders starting from the first day, and the crypto industry leaders are pursuing key crypto orders as well.
US Bitcoin Reserve Approval Soon Under Donald Trump?
On the heels of Donald Trump’s inauguration, the crypto industry is urging the new administration to deliver on campaign promises to establish a pro-crypto regulatory environment. The industry is already having high hopes from Trump who pledged to be a “crypto President”.
Sources familiar with the matter stated that the key promises include a federally-backed US Bitcoin reserve, ensuring crypto companies have access to banking services, and forming a dedicated crypto council, reported Reuters.
Insiders say the industry is pressing for these executive orders to be issued within Trump’s first 100 days in office, with expectations that at least one directive could be announced as early as January 20.
Analysts remain curious as to whether the President-elect will use executive orders, through the Treasury Department, to establish a federal Bitcoin reserve or if such a move would require Congressional approval.
Bitcoin Policy Institute Submits Draft Proposal
Crypto industry advocacy group the Bitcoin Policy Institute has submitted a draft proposal explaining how the reserve could be created. The draft talks of building a strategic Bitcoin reserve asset and mandates the Treasury Secretary to allocate $21 billion over a year to build a national Bitcoin stockpile.
Zack Shapiro, head of policy at the Bitcoin Policy Institute, emphasized the importance of the United States taking the lead in monetizing Bitcoin even before its geopolitical rivals. “The U.S. should act now, rather than risk the price skyrocketing without holding any reserves,” he added. Other countries like Bitcoin-friendly Bhutan, Hong Kong, Germany, and Czech Republic are already working in that direction.
The current Biden administration is acting completely opposite. Reports of the US government selling Bitcoins worth $6.7 billion, obtained through the Silk Road route, have gained traction recently leaving negative market sentiment.
What to Expect With Crypto Policy Changes?
Earlier in July, Donald Trump said that he would end Operation Choke Point unleashed by traditional banks on crypto firms. An executive order instructing bank regulators to adopt a more lenient approach toward crypto could signal the administration’s stance and offer political cover to agency officials.
However, some executives cautioned that it would likely lack legal authority, as federal bank regulators operate independently. Jonah Crane, partner at financial firm Klaros Group said:
“(They) are not going to change policy on the ground on day one. But they will tell you what direction this administration wants to head.”
However, Trump transition team head Brian Hughes said that they are working actively to address concerns of the crypto industry. “There has been an effort in the Washington bureaucratic swamp to stifle innovation… but President Trump will deliver on his promise to encourage American leadership in crypto,” he said.
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