In a move that could have far-reaching implications for the cryptocurrency industry, President-elect Donald Trump is planning to designate cryptocurrency as a national priority, according to sources familiar with the plans.
The executive order, which is expected to be released soon after Trump takes office, aims to guide government agencies to work closely with the crypto industry, according to Bloomberg.
The order will also establish a crypto advisory council that will advocate for the industry’s policy priorities. The council will provide industry insiders with a voice within the administration, ensuring that their concerns and perspectives are taken into account.
This announcement comes on the heels of a proposal by the cryptocurrency industry to create a federal stockpile of Bitcoin. The plan, which has gained real political momentum, aims to have the government buy and hold billions of dollars in Bitcoin, potentially reducing the national debt. While the details of the plan are still under debate, industry executives have been actively lobbying to shape the proposal and are hopeful that Trump will take action soon.
Some estimates suggest that the United States already owns as much as $19 billion in Bitcoin, which has been seized from criminals over time. Some crypto executives are urging Trump to simply hold on to this Bitcoin, which could be done through an executive order. Others are pushing for a more ambitious plan that involves the government acquiring tens of billions of dollars in new Bitcoin, creating a strategic reserve similar to federal stockpiles of gold and oil. However, such a plan would likely require congressional approval due to the significant amount of spending involved.
In addition to these developments, stablecoins, a type of cryptocurrency pegged to a stable asset like the U.S. dollar, are gaining traction and moving into the mainstream. Retailers such as Overstock, Chipotle, Whole Foods, and GameStop are now accepting stablecoins as a form of payment. Payment processor Stripe has enabled merchants to accept USD Coin (USDC), and Regal Cinema is offering a discount for USDC payments. Travel booking platform Travala and gift card platform Bitrefill are also embracing stablecoins as a payment option.
According to Chris Colson, a payments expert at the Federal Reserve Bank of Atlanta, stablecoins are becoming a universal payment method and are being adopted by businesses to reduce transaction fees, settle payments quickly, and attract crypto-savvy customers. The total value of all stablecoins in circulation now exceeds $200 billion, comparable to the GDP of countries like New Zealand or Greece.
