President-elect Donald Trump is reportedly preparing to issue an executive order that would elevate cryptocurrency as a key policy priority in the United States, signaling a significant shift in the government’s approach to the digital asset industry. 

According to a Bloomberg report citing sources familiar with the plans, the executive order could be announced as early as Monday, though details remain subject to change.

The draft executive order is expected to classify cryptocurrency as a "national imperative," a strategic move aimed at encouraging federal agencies to collaborate with the industry. It may also establish a crypto advisory council to provide industry leaders with a formal platform to influence policymaking, sources said.

This potential policy change marks a stark contrast to the regulatory climate under President Joe Biden’s administration, which saw heightened scrutiny of the crypto industry. Federal agencies, including the Securities and Exchange Commission (SEC), initiated over 100 enforcement actions against crypto firms in recent years, targeting major players like Binance and Ripple Labs. 

Industry Optimism Amid Support

Trump’s apparent pivot to crypto-friendly policies aligns with his campaign promises to position the United States as a global leader in the cryptocurrency space. During his campaign, Trump received substantial backing from the crypto industry, including donations from firms like Coinbase and Ripple to his inaugural committee. The industry has also organized events like the “Inaugural Crypto Ball,” scheduled just days before Trump’s swearing-in, to celebrate and support his administration.

"What I think Donald Trump is going to do is signal that the United States is back and ready to lead in this industry," said Kara Calvert, vice president for US policy at Coinbase, the largest cryptocurrency exchange in the country.‍

A New Era for Bitcoin?

One notable proposal reportedly under discussion for the executive order is the creation of a national Bitcoin stockpile. This initiative would consolidate the federal government’s existing holdings of Bitcoin—currently valued at nearly $20 billion, according to analytics firm Arkham—acquired through various investigations.

Bitcoin’s price has surged in recent months, jumping nearly 50% since the November election and crossing the $100,000 mark. Analysts attribute the rally, in part, to market optimism over Trump’s expected crypto policies, including the potential creation of a Bitcoin reserve.

Sources also suggested that the executive order might direct federal agencies to review their policies on digital assets and potentially pause ongoing litigation against crypto companies. Such a move could halt legal actions targeting prominent firms like Binance and Ripple, a priority for industry stakeholders.

While Trump’s reported executive order represents a departure from the enforcement-heavy stance of the previous administration, it aligns with broader industry trends. Over the past year, major financial institutions, including BlackRock and BNY Mellon, have expanded their crypto offerings. Additionally, Cantor Fitzgerald recently announced plans to launch a Bitcoin financing business.‍

The Global Stage

Trump’s embrace of the crypto sector during his campaign, including his appearance at a Bitcoin conference and promises to make the U.S. a crypto hub, reflects a broader ambition to maintain the nation’s leadership in financial innovation. His administration’s policies are likely to signal to other countries that the US is committed to fostering growth in the sector, as noted by industry experts.

However, the details of the executive order are not yet finalized, and its full impact will depend on the implementation and reception across federal agencies.