President-elect Donald Trump’s proposed “Crypto Advisory Council” is expected to establish his promised “Strategic Bitcoin Reserve,” Reuters reported on Nov. 21, citing sources familiar with the matter.
While presidential advisory councils are not new, a dedicated crypto council would be unprecedented, reflecting the sector’s rapid evolution since Bitcoin’s inception in 2008. Blockchain Association CEO Kristin Smith emphasized the urgency of the council’s formation, stating it is “something Trump could do very quickly.”
The council will also advise on crypto policy and work with Congress on crypto legislation.
The report highlighted that the council may be housed under the White House’s National Economic Council or operate independently.
According to industry insiders, major US-based companies, including Coinbase, Paradigm, and Andreessen Horowitz’s crypto arm, a16z, Ripple, Kraken, and Circle, are seeking a seat on the council.
Bitcoin Magazine CEO David Bailey, a key organizer behind Trump’s July appearance at a Nashville Bitcoin Conference, said:
“It’s being fleshed out, but I anticipate the leading executives from America’s Bitcoin and crypto firms to be represented.”
Excitement over Trump’s pro-crypto stance has already buoyed Bitcoin (BTC) prices, which touched a new all-time high of $99,100 on Nov. 21.
Bitcoin reserve idea gains traction
Satoshi Act Fund founder Dennis Porter is discussing introducing legislation in Texas on a “Strategic Bitcoin Reserve.”
The Texas movement is Porter’s latest effort to introduce a dedicated Bitcoin reserve to a US state. On Nov. 14, Pennsylvania, through Representative Mike Cabell, introduced a bill to create a BTC reserve using the state’s $7 billion fund.
The proposal suggests an initial allocation of up to 10% in Bitcoin but also acknowledges that a smaller exposure of 1% to 5% could be a more suitable starting point.
After Pennsylvania’s proposal, Porter stated that up to 10 more US states will likely follow suit this year, with Texas potentially being the first.
Additionally, he previously told CryptoSlate that state governments are rushing to pass legislation establishing their own BTC Reserves, as President-elect Donald Trump’s administration is considering an executive order to formalize this matter.
The idea of a Strategic Bitcoin Reserve gained traction following Trump’s election. During his presidential campaign, he displayed a pro-crypto stance, and one of his promises was to create a BTC reserve in the U.S. Treasury.
This idea was quickly backed by pro-crypto politicians, such as Senator Cynthia Lummis, who introduced legislation for such reserve called “The Bitcoin Act” and believes Trump could approve it in his first 100 days at the White House.
Policy and oversight
The council will likely coordinate with regulatory agencies, including the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and Treasury, to craft crypto policy and streamline enforcement efforts.
Trump’s team is also reportedly considering creating a “crypto czar” role to lead the council, with candidates such as former CFTC Chair Heath Tarbert, ex-Commissioner Brian Quintenz, and former SEC chief Christopher Giancarlo under consideration.
The move comes as Trump promises to reverse President Joe Biden’s stringent enforcement actions. The administration is expected to prioritize executive orders that ensure crypto companies’ access to banking services, halt enforcement actions, and position the industry as a strategic economic asset.
Ethical concerns
Critics, including consumer advocacy groups, caution against allowing the crypto industry to heavily influence policymaking, warning of potential conflicts of interest.
Some ethics considerations may delay appointments, though industry leaders argue that experienced voices are essential for crafting effective regulations.
Anchorage Digital CEO Nathan McCauley stated:
“It’s absolutely the wise choice to put together a council of people who… understand how both the industry ought to be regulated and how to situate the industry to be a strategic asset.”
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Source: https://cryptoslate.com/trumps-crypto-advisory-council-to-setup-promised-strategic-bitcoin-reserve-report/