Trump Proposes Establishment of Crypto Advisory Council and Bitcoin Reserve
President-elect Donald Trump’s plan to create a “Crypto Advisory Council” aims to oversee crypto policy, collaborate with Congress on legislation, and establish a Strategic Bitcoin Reserve, a concept promoted during his campaign. This initiative signifies a notable advancement for the crypto sector since Bitcoin's inception in 2008.
This specialized council may operate under the White House’s National Economic Council or function independently. Major industry players such as Coinbase, Ripple, Kraken, Circle, Paradigm, and Andreessen Horowitz’s crypto division, a16z, are seeking participation. Kristin Smith, CEO of the Blockchain Association, emphasized the urgency of forming this council promptly.
The Strategic Bitcoin Reserve concept is gaining traction at the state level. In Pennsylvania, Representative Mike Cabell proposed allocating part of the state’s $7 billion fund to Bitcoin, suggesting an initial exposure between 1% and 10%. Dennis Porter, founder of the Satoshi Act Fund, advocates similar measures in Texas and anticipates that up to 10 states might adopt comparable plans soon, with Texas likely taking the lead.
Trump’s pro-crypto position has bolstered market optimism. On November 21, Bitcoin reached an all-time high of $99,100, indicating increased investor confidence in its future as a strategic asset.
David Bailey, CEO of Bitcoin Magazine, expects executives from major US crypto firms to have significant roles in the council. The administration is also considering appointing a "crypto czar" to spearhead the initiative, with potential candidates including Heath Tarbert, former CFTC Chair; Brian Quintenz, ex-CFTC Commissioner; and Christopher Giancarlo, a former SEC official.
The proposed council would collaborate with federal agencies like the SEC, CFTC, and Treasury to develop consistent crypto regulations and improve enforcement. Trump's team intends to reverse President Joe Biden’s strict enforcement actions to ensure crypto companies retain banking access and are recognized as a strategic economic asset. Executive orders are anticipated to facilitate these initial efforts.
Despite the enthusiasm, ethical concerns persist. Consumer advocacy groups caution that significant influence from the crypto industry in policymaking could result in conflicts of interest, potentially delaying appointments. Conversely, industry leaders argue that experienced voices are crucial for shaping effective regulations. Anchorage Digital CEO Nathan McCauley supports involving experts who understand both regulatory needs and the industry's strategic importance.
Trump’s pro-crypto agenda signals a shift in the government’s approach to the sector. With plans for a Bitcoin reserve, supportive policies, and a dedicated advisory council, his administration seeks to strategically integrate crypto into the US economy while addressing regulatory challenges.