Credited from: SALON
As President-elect Donald Trump prepares to assume office, significant changes are anticipated for the cryptocurrency landscape in the United States. Reports indicate that Trump plans to issue an executive order that will designate cryptocurrency as a national priority, a move aimed at guiding government agencies to collaborate closely with the digital asset industry. This information comes from multiple credible sources including SCMP and Reuters.
The proposed order, which could be enacted as soon as Monday, is set to establish a crypto advisory council and may potentially pause ongoing litigation involving cryptocurrency firms. With the industry still recovering from a tumultuous period characterized by investigations and regulatory scrutiny during Biden's term, Trump's administration represents a new chapter for proponents of digital assets. The recent collapse and scandals, such as the **FTX bankruptcy**, led to heightened scrutiny and over 100 enforcement actions against crypto firms, which stakeholders now hope to alleviate under Trump’s governance.
Bitcoin's price trajectory has reacted positively to the anticipated executive order, recently soaring above $100,000. According to a Forbes report, this surge comes almost a month after Bitcoin’s value was around $20,000, reflecting a considerable rebound propelling upswing sentiment across the financial markets.
Part of Trump's strategy includes the establishment of a national bitcoin stockpile, akin to the federal government's management of gold reserves. Such an initiative would allow the government to purchase and hold bitcoin, marking a substantial shift towards normalizing cryptocurrency in federal policies. Prominent figures in the crypto world, including Elon Musk and advocates like David Sacks, have supported this newfound government interest in cryptocurrency. Sacks, who has been nominated as a crypto czar, is expected to help shape regulations friendly towards the digital asset ecosystem.
Industry players view this as an opportunity to reshape the regulatory landscape that has previously hampered growth and innovation. The forthcoming executive order is viewed as a crucial turning point that may set precedents for regulatory frameworks that both acknowledge the unique attributes of cryptocurrencies and facilitate their orderly integration into the financial system.
Moreover, Trump's political ties with cryptocurrency donors and PACs have underscored the industry's influence on shaping policy directions. Companies like Coinbase, Kraken, and other key stakeholders pledged significant financial support for Trump's initiatives, indicating strong backing from the industry.
Trump's promise to make the U.S. "the crypto capital of the world" resonates with many investors eager for clarity and support in the evolving digital asset landscape. As the incoming administration sets its course, the expectations are high among crypto enthusiasts and advocates for an environment that fosters innovation and resolves regulatory uncertainties.
For further insights, read more on the developments in cryptocurrency policy as they unfold through the links provided above.