Important takeaways
- Donald Trump is ‘susceptible’ to establishing a strategic reserve of US-based digital assets such as Solana, USD Coin and Ripple.
- The proposed policy shift could include the appointment of crypto-friendly officials and the end of debanking practices that affect cryptocurrency startups.
President-elect Donald Trump is warming to the idea of establishing an ‘America-first strategic reserve’ that would focus on US-made digital assets like Ripple, Solana and USD Coin, New York Post reported Thursday, citing sources with knowledge of the matter.
Trump has shown interest in the concept through meetings with the founders of these projects. However, the idea has raised concerns among insiders that it could weaken Bitcoin’s market leadership, the report noted.
Despite concerns, there is optimism that this development could benefit the crypto industry as a whole.
Creating a national Bitcoin inventory remains one of Trump’s biggest crypto promises. Driven by the expectation that the US will soon pursue this goal, public companies have begun adding Bitcoin to their respective reserves.
Efforts at the state level are also underway. Oklahoma Representative Cody Maynard recently introduced the Strategic Bitcoin Reserve Act, which would allow the state treasurer to invest public funds in crypto assets, including bitcoin and stablecoins. This is part of the broader effort to build strategic crypto reserves in various US states, including Texas, Pennsylvania and Ohio.
Metaplanet CEO Simon Gerovich predict that if Trump establishes a strategic Bitcoin reserve, it will encourage Japan and other Asian nations to follow suit.
The Trump administration plans to issue crypto-focused executive orders
The incoming administration is set to issue executive orders focuses on crypto, the Washington Post said Monday. This may include establishing a Bitcoin reserve and ending debanking practices, which are commonly described as “Operation Choke Point 2.0.”
But since a future administration could easily rescind these directives, establishing a strategic Bitcoin reserve through an executive order may lack the permanence many desire, New York Digital Investment Group (NYDIG) notes in a recent Report.
Legislation like the BITCOIN Act introduced by Senator Cynthia Lummis would provide a more solid foundation for the reserve, according to NYDIG.
This would ensure that it remains intact regardless of changes in political leadership, but it may also require more time to pass due to the complexities of congressional approval and potential delays in the legislative agenda.
