President-elect Donald Trump’s plan to establish a “Crypto Advisory Council” is making waves in the financial world. According to a recent report from Reuters, this council will oversee crypto policy, collaborate with Congress on legislation, and work towards creating a Strategic Bitcoin Reserve, an idea Trump championed during his campaign. The council would mark a significant step forward for the crypto sector, which has grown rapidly since Bitcoin's launch in 2008.
Unlike traditional presidential advisory councils, this crypto-specific group could function under the White House’s National Economic Council or operate independently. Industry leaders like Coinbase, Ripple, Kraken, Circle, Paradigm, and Andreessen Horowitz’s crypto division, a16z, are reportedly vying for a seat on the council. Kristin Smith, CEO of the Blockchain Association, stressed the importance of forming this council quickly, saying it could be implemented immediately.
The idea of a Strategic Bitcoin Reserve has already gained momentum at the state level. In Pennsylvania, Representative Mike Cabell recently proposed allocating a portion of the state’s $7 billion fund to Bitcoin, suggesting an initial exposure of 1% to 10%. Dennis Porter, founder of the Satoshi Act Fund, has been pushing similar legislation in Texas and believes other states will follow suit soon. Porter stated that up to 10 states could introduce similar plans this year, with Texas likely to lead the charge.
Excitement about Trump’s pro-crypto stance has fueled optimism in the market. On November 21, Bitcoin hit an all-time high of $99,100, reflecting growing investor confidence in the cryptocurrency's future role as a strategic asset.
David Bailey, CEO of Bitcoin Magazine and a key figure in Trump’s appearance at a Bitcoin conference in Nashville, anticipates that top executives from major US crypto firms will play a prominent role in the council. Additionally, Trump’s administration is reportedly considering appointing a "crypto czar" to lead the initiative. Names like Heath Tarbert, former CFTC Chair; Brian Quintenz, an ex-CFTC Commissioner; and Christopher Giancarlo, a former SEC official, are being floated as potential candidates for the role.
The proposed council would work with federal agencies like the SEC, CFTC, and Treasury to create consistent crypto regulations and streamline enforcement. Trump’s team also plans to undo President Joe Biden’s stringent enforcement actions, ensuring crypto companies maintain access to banking services and are positioned as a strategic economic asset. Executive orders are expected to play a significant role in these early moves.
Despite the enthusiasm, critics are raising ethical concerns. Consumer advocacy groups warn that allowing the crypto industry significant influence in policymaking could lead to conflicts of interest. These concerns could slow the appointment process. However, industry leaders argue that experienced voices are necessary to shape effective regulations. Anchorage Digital CEO Nathan McCauley supports the move, saying it’s essential to involve experts who understand both the need for regulations and the strategic importance of the industry.
Trump’s pro-crypto platform represents a shift in the government’s approach to the sector. With the potential establishment of a Bitcoin reserve, supportive policies, and a dedicated advisory council, his administration aims to integrate crypto into the US economy strategically while addressing regulatory challenges.
