Photo: Ryan M. Kelly
Important points
- President Donald Trump plans to prioritize cryptocurrencies as a major policy area through an executive order.
- The move signals a shift in the Biden administration's regulatory approach to a more supportive stance toward cryptocurrencies.
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President-elect Donald Trump plans to issue an executive order prioritizing cryptocurrencies as a major policy area, Bloomberg reports.
The order, which could be issued as early as Monday, would establish a crypto advisory committee to incorporate industry perspectives into the administration.
The move marks President Joe Biden's departure from the administration. During his tenure, more than 100 enforcement actions were taken against crypto companies, including high-profile cases involving FTX and Binance.
The administration also implemented policies restricting crypto companies' access to banking services.
The planned executive order would require all government agencies to review their digital asset policies and potentially suspend ongoing lawsuits against companies such as Ripple Labs and Binance.
According to data from Arkham Analytics, various studies suggest that the U.S. government may consolidate the roughly $20 billion in Bitcoin currently held by the U.S. government and establish a national Bitcoin stockpile.
Trump's support for cryptocurrencies was made clear during his presidential campaign, when he attended a Bitcoin conference in July and pledged to make the United States the world's crypto leader.
His family has launched crypto initiatives such as World Liberty Financial, which focuses on acquiring and borrowing cryptocurrencies.
World Liberty Financial holds about $4 million in Ethereum, $1.9 million in Aave, $1.8 million in Chainlink, and nearly $670,000 in ENA, according to Arkham data.
Despite regulatory challenges, the crypto sector has expanded under the Biden administration, with major financial institutions such as BlackRock and BNY Mellon entering the market.
BlackRock launched a Spot Bitcoin and Ether ETF last year, and Cantor Fitzgerald announced plans for a Bitcoin lending business.
The industry plans to host the “First Crypto Ball” in support of Trump to highlight the growing political influence of cryptocurrencies in Washington.
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