President-elect Donald Trump is planning to establish a “Crypto Advisory Council” to create a “Strategic Bitcoin Reserve,” according to Reuters. The council will advise on crypto policy and work with Congress on legislation, potentially operating under the White House’s National Economic Council. Major US-based companies like Coinbase, Ripple, and Kraken are seeking a seat on the council, reflecting excitement over Trump’s pro-crypto stance.
The idea of a Strategic Bitcoin Reserve gained traction following Trump’s election, with several US states considering legislation to create a BTC reserve. Pennsylvania introduced a bill to allocate up to 10% of its $7 billion fund to Bitcoin, and Texas is also considering a similar move. Senator Cynthia Lummis has introduced the “Bitcoin Act” to establish a BTC reserve and believes Trump could approve it early in his term.
The advisory council is expected to coordinate with regulatory agencies like the SEC, CFTC, and Treasury to craft crypto policy and oversee enforcement efforts. A “crypto czar” may be appointed to lead the council, with former regulatory officials being considered for the role. The Trump administration aims to prioritize executive orders that support the crypto industry’s access to banking services and position it as a strategic economic asset.
Critics warn of potential conflicts of interest if the crypto industry heavily influences policymaking, raising ethical concerns about the council’s composition. However, industry leaders argue that experienced voices are crucial for effective regulation. Anchorage Digital CEO Nathan McCauley believes that assembling a council of individuals who understand the industry and regulation is a wise choice for shaping crypto policy.
In conclusion, President-elect Donald Trump’s plans to establish a Crypto Advisory Council and a Strategic Bitcoin Reserve signal a significant shift towards embracing crypto assets at the highest levels of government. The council’s formation reflects the growing importance of the crypto industry and its potential impact on the US economy. As the administration navigates the complexities of regulating cryptocurrency, industry leaders and policymakers must work together to create a framework that supports innovation while addressing regulatory challenges. By collaborating effectively, the council can help shape a responsible and sustainable approach to crypto policy that benefits both the industry and consumers.
