by Jude Ayua
With less than 24 hours from his inauguration on January 20, media reports disclose US President-elect Donald Trump plans to issue an executive order to create an “America-first” crypto reserve. The executive order, expected on Trump’s first day in office, will prioritize US-founded digital assets including USD Coin (USDC), Solana (SOL), and Ripple (XRP).
“While many in the cryptocurrency community have been cheering on the pro-crypto executive orders Trump is expected to issue, one idea is causing more controversy: the idea of an America-first strategic reserve that would prioritize digital coins founded in the US, like Solana, USD Coin and Ripple’s XRP,” the New York Post (NYP) wrote in a report.
NYP’s report states that Trump has recently met with the founders of these projects and is open to the idea.
The proposed reserve aims to strengthen the US digital asset market, in line with Trump’s support for the industry. Trump’s endorsement of US-based cryptocurrencies could promote domestic financial innovations and reduce reliance on foreign-based digital currencies.
However, the priority on US-founded assets will be a departure from a bitcoin (BTC) reserve which was Trump’s initial plan as he promised during his campaign. Anonymous insiders have cautioned this departure might undermine efforts to promote BTC. Notably, the expected executive order is still subject to revisions before it will become public.
Read also: Anticipation of a new pro-crypto administration in the US boosts confidence in crypto—The Block’s Report.
Crypto Presidential Advisory Council
Another executive order Trump is working on is to establish a Crypto Presidential Advisory Council, as reported by Bloomberg. The order is expected to make crypto a national priority, encouraging government agencies to collaborate with the industry. It will also empower the advisory council to advocate for relevant crypto policy goals and give industry leaders greater influence within the Trump’s administration.
Trump’s crypto-related executive orders would be a major shift from President Joe Biden administration’s approach, which was restrictive of the crypto industry, including over 100 enforcement actions by the Securities and Exchange Commission (SEC) and banking restrictions. Expectations are high that Trump will direct federal agencies to review their digital asset policies and potentially minimize their tough scrutiny of the industry.
Trump: A crypto President
Key stakeholders in the US crypto community have described Trump as a crypto President. The industry supported his presidential campaign by donating huge amounts in cryptocurrencies through several political action committees. Major companies such as Coinbase and Ripple, recently contributed to Trump’s inaugural committee.
But perhaps there is no better indication that Trump is indeed a crypto president than Trump’s lunch of $Trump, his memecoin which hit over $20billion in market cap in less than 24 hours Saturday.
Trump’s crypto-related moves so far include his appointment of pro-crypto agency chairs including the SEC, Commodity Futures Trading Commission, other appointments like David Sacks and Elon Musk, and opposing crypto-related banking restrictions linked to “Operation Choke Point 2.0.”
Read also: Crypto.com withdraws SEC lawsuit after CEO’s meeting with Trump.
Trump pledged during his campaign to make the US the crypto capital of the world. He attended the Bitcoin Conference in July 2024, where he hinted about firing the incumbent SEC Chair Gary Gensler due to Gensler’s crypto assets policies. Trump and his sons also launched World Liberty Financial, a project aimed to facilitate crypto earning and borrowing, in September 2024.
Celebrations and expectations
Key industry stakeholders are excited and optimistic about Trump’s administration. Coinbase Vice President, US Policy, Kara Calvert, has observed, “Trump will signal that the U.S. is ready to lead in this industry. It’s a message to other nations that they need to keep up or risk falling behind.”
“The entire market is relieved … we have a seismic shift in the approach and tone of the government and regulatory agencies,” Frank Chaparro, a Bitcoin investor and director at The Block, said. “What this means practically is, banks will be able to touch crypto — for the last four years they’ve been told they can’t,” he added
The crypto community scheduled the first-ever “Crypto Ball” in Washington, DC, on Friday, 17 January, with David Sacks as the host, to kick off a weekend of celebrations ahead of Trump’s inauguration on 20 January. The event, with tickets from $2,500—all sold out before the date—to $1 million, was sponsored by Coinbase, Solana, MicroStrategy, Kraken, Galaxy Digital and more.
Jude Ayua is a policy analyst at CAB. A lawyer, Jude is an associate at Infusion Lawyers where he is a member of the Blockchain & Virtual Assets Group. He is also a member of the Policy & Regulations Committee of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN). Jude reports and writes on crypto policy and regulations. jude@infusionlawyers.com
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