Reuters reported on November 21, citing sources familiar with the matter, that the "Cryptocurrency Advisory Council" proposed by President-elect Donald Trump is expected to establish a "Strategic Bitcoin Reserve" as he promised.
While presidential advisory councils are not new, a dedicated cryptocurrency council would be unprecedented, reflecting the rapid development of this field since Bitcoin's inception in 2008. Blockchain Association Executive Director Kristin Smith emphasized the urgency of forming the council, stating that this is "something Trump could accomplish very quickly."
The council will also advise on cryptocurrency policy and work with Congress on cryptocurrency legislation.
The report emphasizes that this council could be part of the National Economic Council of the White House or operate independently.
According to industry insiders, major U.S.-based companies, including Coinbase, Paradigm, and the cryptocurrency arm of Andreessen Horowitz, a16z, Ripple, Kraken, and Circle, are seeking a seat on the council.
The CEO of Bitcoin Magazine, David Bailey, the main organizer behind Trump's appearance in July at the Bitcoin Conference in Nashville, said:
“This issue is still being finalized, but I expect top executives from U.S. Bitcoin and cryptocurrency companies to be present.”
Excitement over Trump's pro-cryptocurrency stance has driven Bitcoin (BTC) prices to an all-time high of $99,100 on November 21.
The idea of a Bitcoin reserve is gaining attention.
The founder of the Satoshi Act Fund, Dennis Porter, is discussing the introduction of legislation in Texas regarding the “Strategic Bitcoin Reserve Fund.”
The Texas movement is Porter’s latest effort to introduce a dedicated Bitcoin reserve fund for a U.S. state. On November 14, Pennsylvania, through Representative Mike Cabell, introduced a bill to create a BTC reserve fund using the state’s $7 billion fund.
This proposal suggests an initial allocation of up to 10% into Bitcoin but also acknowledges that a smaller exposure of 1% to 5% may be a more suitable starting point.
Following Pennsylvania's proposal, Porter announced that up to 10 other U.S. states may follow suit this year, with Texas likely being the first state.
Additionally, he previously told CryptoSlate that state governments are rapidly passing laws to establish their own BTC reserve funds, as the administration of President-elect Donald Trump is considering issuing an executive order to formalize this issue.
The idea of a Strategic Bitcoin Reserve has gained attention following Trump's election. During his presidential campaign, he expressed support for cryptocurrency and one of his promises was to create a BTC reserve in the U.S. Treasury.
This idea has quickly been supported by cryptocurrency-friendly politicians, such as Senator Cynthia Lummis, who has proposed legislation for this type of reserve currency called the “Bitcoin Act” and believes Trump could approve it within the first 100 days at the White House.
As Porter reported, even BlackRock, the largest asset management company in the world, is also supporting the idea of a BTC reserve in the U.S.
Policy and oversight
The council will likely coordinate with regulators, including the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Department of the Treasury, to develop cryptocurrency policy and streamline enforcement efforts.
Trump's team is also reportedly considering establishing a position of "crypto czar" to lead the council, with candidates like former CFTC Chairman Heath Tarbert, former Commissioner Brian Quintenz, and former SEC Director Christopher Giancarlo being considered.
This move comes as Trump promises to reverse the strict enforcement actions of President Joe Biden. The administration is expected to prioritize executive orders ensuring cryptocurrency companies have access to banking services, stopping enforcement actions, and positioning the industry as a strategic economic asset.
Ethical concerns
Critics, including consumer advocacy groups, warn against letting the cryptocurrency industry influence policy-making too much, while also cautioning about potential conflicts of interest.
Some ethical considerations may delay the appointment, although industry leaders argue that experienced voices are necessary to build effective regulations.
The CEO of Anchorage Digital, Nathan McCauley, stated:
“This is definitely a wise choice when forming a council of individuals… who understand how to manage this industry as well as how to position this industry to become a strategic asset.”
