(Corrects spelling of Jonah Crane in paragraphs 15 and 18)
By Hannah Lang
(Reuters) -The cryptocurrency industry is pressuring President-elect Donald Trump’s team to kick off his promised cryptocurrency policy review when he takes office next month with executive orders that would help boost the tokens, according to cryptocurrency industry officials. industry.
Trump plans to issue a series of executive orders and directives on everything from immigration to energy on his first day in office on Jan. 20, Reuters reported this month.
During the election campaign, Trump courted the cryptocurrency with promises to be a “crypto president,” and the industry wants him to make good on that promise with executive orders that create a bitcoin reserve, ensure the industry can access banking services, and create a cryptocurrency . advice, people said.
They are pushing for those executive orders to be issued within Trump’s first 100 days in office, and expect at least one to arrive by Jan. 20, two other people with knowledge of the matter said.
“Given the tenor of the campaign, it would be imperative that the executive orders actually lay out what the real priorities will be on day one and provide some sort of roadmap,” said Rebecca Rettig, chief legal and policy officer at cryptocurrency company Polygon Labs. .
Concerned about crime and volatility, President Joe Biden’s regulators cracked down on cryptocurrency companies, but Trump has vowed to reverse course. Its crypto policy team is already taking shape, with the announcement this month from Securities and Exchange Commission Chairman Paul Atkins and White House crypto czar David Sacks.
“There has been an effort in the bureaucratic morass of Washington to stifle innovation… but President Trump will keep his promise to encourage American leadership in crypto,” Trump transition team spokesman Brian Hughes said in a statement. .
The world’s largest cryptocurrency, hit new records above $107,000 this month after Trump reiterated his plan, first revealed in a speech in July, for a strategic reserve of bitcoins. Bitcoin has since fallen back below $100,000.
Analysts are divided on whether Trump could use executive powers to create the reserve, potentially through the Treasury Department, or whether a congressional act would be necessary.
One industry group, the Bitcoin Policy Institute, has even drafted text for a possible executive order that Trump could use to establish such a reserve.
That draft would designate bitcoin as a strategic reserve asset and require the Treasury Secretary to spend $21 billion over a year to build up a national reserve of bitcoin, according to the draft seen by Reuters.
Zack Shapiro, head of policy at the Bitcoin Policy Institute, said the United States should get ahead of its geopolitical rivals in monetizing bitcoin, “rather than the price going up without the United States having reserves.” He declined to say whether the group had shared the draft with Trump’s team.
Trump also said in July that he would not allow banks to “strangle” cryptocurrency companies out of the traditional financial system, and some executives expect he will try to address that issue with an executive order as well. Cryptocurrency companies have long complained that banks do not work with them due to regulatory scrutiny, although regulators say banks are free to make loans to cryptocurrency companies that comply with the law.
While an executive order directing banking regulators to go easy on cryptocurrencies would send a signal to agency officials and give them political cover, it is unlikely to have legal force since federal banking regulators are independent, some warned. executives.
“(They) are not going to change policy on the ground from day one,” said Jonah Crane, partner at financial firm Klaros Group. “But they will tell you what direction this administration wants to take.”
Trump has also said he will create a crypto industry council and his team is discussing how to structure and staff it. Previous administrations have created specialized councils through executive orders, executives noted.
More broadly, Trump could also try to address cryptocurrency complaints that existing regulations are inadequate for the industry with an executive order articulating basic principles for cryptocurrency regulation, similar to an order Trump issued in 2017 ordering regulators to review banking rules.
“I wouldn’t be surprised if we get something like an executive order right out of the gate directing agencies to reexamine their rules in this space,” Crane added.