Bloomberg: Donald Trump Plans to Declare Cryptocurrencies a National Priority

A New Era for U.S. Crypto Policy

According to a report by Bloomberg, President-elect Donald Trump is preparing to designate cryptocurrencies as a national priority, signaling a significant shift in U.S. policy. This move would mark a stark departure from the enforcement-driven approach under the Joe Biden administration, which saw increased scrutiny following high-profile incidents like the collapse of the FTX exchange.

Trump's planned executive order, expected as early as January 20, would elevate digital assets to a central focus in his administration's economic strategy and give cryptocurrency industry leaders a direct role in shaping policy.

Bloomberg sources outlined several potential provisions in the executive order:

1. Industry Inclusion in Policy-Making: Cryptocurrency industry insiders would be granted greater involvement in regulatory discussions, fostering collaboration between the private sector and government.
2. Policy Review Across Agencies: Federal agencies would be tasked with reviewing existing policies related to digital assets, ensuring a coordinated and updated approach to regulation.
3. Suspension of Cryptocurrency Lawsuits: The order may include a directive to pause active lawsuits related to cryptocurrencies, signaling a willingness to reassess enforcement actions.

While the draft is still under development, these initiatives reflect Trump's intent to create a more crypto-friendly regulatory environment.

The executive order represents a stark contrast to the Biden administration's stance, which was characterized by intensified investigations and enforcement actions against the cryptocurrency industry. The shift comes amid criticism of Biden's handling of the sector, with allegations of overreach and a lack of clear regulatory guidance.

Wyoming Senator Cynthia Lummis recently criticized the Biden administration's plans to sell 69,370 BTC seized by the U.S. Marshals Service, demanding a legal review of the decision. Trump's policy could delay or halt such actions, signaling a more strategic approach to leveraging federal cryptocurrency holdings.

If implemented, Trump's executive order could:

• Boost Institutional Confidence: A national priority designation would enhance Bitcoin and cryptocurrency legitimacy, encouraging greater institutional and corporate adoption.
• Stimulate Innovation: By reducing regulatory uncertainty, the order could foster innovation in blockchain technologies and digital finance.
• Increase Global Competitiveness: The U.S. would position itself as a leader in cryptocurrency regulation and adoption, potentially influencing global standards.

Trump's announcement has already sparked optimism among cryptocurrency enthusiasts and industry leaders. Analysts expect the proposed measures to drive significant investment and innovation in the U.S. crypto sector, aligning with Trump's broader economic goals.

Despite its potential, the executive order faces uncertainties:

• Legal and Political Resistance: The policy may encounter opposition from regulatory bodies and lawmakers wary of the risks associated with cryptocurrencies.
• Market Risks: While a more favorable regulatory environment could boost confidence, unresolved issues like fraud prevention and systemic risk remain critical concerns.

Trump's plan to make cryptocurrencies a national priority could transform the U.S. into a global leader in digital asset adoption. By fostering collaboration, reviewing outdated policies, and pausing aggressive enforcement, the proposed executive order aims to rebuild trust and position the cryptocurrency industry as a cornerstone of the future U.S. economy. However, its success will depend on balancing innovation with prudent oversight.