As the crypto community in the US expects a policy reversal to legitimise the industry under Trump’s Presidency, there are plans to make cryptocurrency a national priority. According to a Bloomberg report citing people aware of the development, the incoming President Donald Trump has plans to release an executive order naming crypto as a policy priority, and guiding government agencies to work with the crypto industry.
Moreover, there are also plans to create a crypto advisory council to voice policy priorities of the industry, the report said citing sources requesting anonymity.
The executive order is expected to turn around the fortunes of the US crypto industry, which has faced multiple investigations around frauds during President Biden’s administration.
For instance, in 2023 alone, Americans reportedly lost over $5.6 billion in crypto fraud schemes, marking a 45 per cent growth from the previous year. Investment fraud was the most prevalent, accounting for around $3.96 billion of the losses.
In 2021, the US Department of Justice set up the National Cryptocurrency Enforcement Team to probe and prosecute criminal misuses of cryptocurrency. In the same year, the Treasury Department sanctioned the crypto exchange SUEX for facilitating transactions for ransomware actors.
According to Bloomberg, a directive for government agencies to review policies for digital assets and likely pause any litigation involving crypto is still being discussed as part of the executive order.
Moreover, the executive order may also include a national Bitcoin stockpile, encompassing the US government’s existing holdings of the world’s biggest cryptocurrency, according to the report citing the people aware of the plan.
The US government’s crypto portfolio is currently valued at $20.6 billion, of which $20.15 billion is Bitcoin, as per data from crypto intelligence company Arkham. Bitcoin has jumped by almost 50 per cent to over $100,000, since the November election, in part on hopes that such a stockpile would be created.
The people aware of the plan, however, noted that the executive order, which may come as soon as Monday, could change before it is released. A representative of Trump didn’t immediately respond to a request for comment by Bloomberg.
Importantly, the crypto industry in the US has grown despite regulatory setbacks under President Biden’s administration, as large financial enterprises such as asset manager BlackRock Inc., launched spot Bitcoin and Ether exchange-traded funds last year.