The Crypto Industry Braces for a Regulatory Overhaul Under Trump's Leadership

The cryptocurrency industry is eagerly awaiting the rollout of his long-promised regulatory overhaul. According to Reuters, there is growing anticipation over potential executive orders aimed at cementing the U.S.’s role as a global leader in digital assets.

The cryptocurrency industry is eagerly awaiting the rollout of his long-promised regulatory overhaul.

According to Reuters, there is growing anticipation over potential executive orders aimed at cementing the U.S.’s role as a global leader in digital assets. Industry insiders are pushing for Trump to take immediate action on his first day in office, making good on his campaign promise to create a friendlier regulatory environment for the crypto sector.

A Strategic Bitcoin Reserve?

One of the most anticipated moves is Trump’s proposed creation of a national Bitcoin reserve. During his campaign, Trump hinted at the idea of making Bitcoin a “strategic reserve asset.” This concept has already gained traction among some policymakers and crypto advocates. The Bitcoin Policy Institute, for example, has proposed an executive order under which the US government might invest up to $21 billion per year for five years to accumulate Bitcoin. This might substantially disrupt the cryptocurrency market by removing a large percentage of Bitcoin from circulation.

Zack Shapiro, head of policy at the Bitcoin Policy Institute, argued, “The U.S. should be ahead of the curve in acquiring bitcoin. If we wait too long, other nations could dominate this space.” Analysts argue on whether this can be accomplished through executive action or if legislation is needed, but the Bitcoin Act of 2024, which was introduced by Senator Cynthia Lummis, suggests that the Federal Reserve and Treasury buy 200,000 Bitcoin each year, with the possibility of acquiring up to 1 million Bitcoin by 2029.

Crypto-Friendly Regulation

Trump’s administration is also anticipated to criticize the present regulatory climate, which many in the crypto business regard as inhibiting innovation. That came from the hardline approach the administration of President Joe Biden had on cryptocurrency, which led to the heavy hand of regulation that many argue has driven crypto businesses offshores. But Trump promised change. “There has been an effort to stifle innovation, but President Trump will keep his promise to promote American leadership in crypto,” said Brian Hughes, a spokesman for Trump’s transition team.

Trump’s pick to lead the SEC, Paul Atkins, was viewed as more lenient and pro-crypto, in contrast to the current head, Gary Gensler, who helmed several high-profile enforcement actions against crypto firms. Atkins, who had previously served as a commissioner at the SEC and before that had ties to the digital asset industry, voices support for common-sense regulations that foster innovation but protect investors.

Crypto Industry Council and Banking Access

In addition to his plans for a bitcoin reserve, Trump is reportedly considering the creation of a “crypto industry council.” This council would advise the government on matters related to digital assets and is seen as a step toward formalizing the U.S. government’s relationship with the crypto industry.

Another key issue for crypto firms is the lack of access to banking services. Many digital asset companies have complained about being unable to secure traditional banking relationships due to regulatory uncertainty. Trump has promised to prevent banks from “choking” crypto businesses and ensure that financial institutions provide services to firms that comply with the law. An executive order addressing this issue could signal a new era of collaboration between banks and crypto companies, although the practical impact might be limited, given the independence of banking regulators.

Market Implications: Bitcoin Price Surge?

The mere prospect of these changes has already had a significant impact on the cryptocurrency market. Bitcoin recently hit a record high of $107,000, and while its price has since dipped, the cryptocurrency community remains optimistic. Experts speculate that, if Trump successfully pushes through his crypto-friendly policies, bitcoin could experience even greater price appreciation. According to Perianne Boring, the founder of The Digital Chamber, “The sky’s the limit for Bitcoin because its supply is fixed while demand is increasing, sending its price skyrocketing if Trump’s policies pay off.”

Bitcoin (BTC) price chart. Source: Bitcoin Liquid Index (BLX) via Brave new Coin

The highly-cited stock-to-flow model places the potential price of bitcoin at over $800,000 toward the close of 2025, though there is a prospect that could catapult its price up to $1 million per unit. A surge of this size will be enough not only to reshape digital assets but possibly fit in as integral in global finance systems.

Early Action: Can Trump Deliver?

While Trump’s transition team has made bold promises, it remains unclear whether these executive orders can be implemented on Day 1. The legal complexities surrounding bitcoin’s status as a reserve asset and the challenges of regulating the crypto industry are significant hurdles. However, there is widespread belief within the industry that the president-elect’s actions could set the tone for his administration’s approach to digital assets.

As Rebecca Rettig, Chief Legal and Policy Officer at Polygon Labs, told Reuters, “It’s imperative that his first set of executive orders provides a roadmap, setting clear priorities for the