President-elect Donald Trump's transition team is reportedly set to implement the establishment of a national Strategic bitcoin Reserve (SBR). At the center of this development is the formation of a cryptocurrency advisory council to review US policy on digital assets, as Reuters <a target="_blank" href="https://x.com/BitcoinMagazine/status/1859678570811097381″ target=”_blank” rel=”noopener nofollow”>information.
Major cryptocurrency companies are vying for board seats, including Ripple, Kraken, Circle, and venture capital firms such as Paradigm and Andreessen Horowitz's a16z cryptocurrency arm. The council is expected to be located within the White House's National Economic Council or in a separate executive apparatus.
bitcoin Strategic Reserve Could Become Real
“It's developing, but I anticipate that top executives from U.S. bitcoin and cryptocurrency companies will be represented,” said David Bailey, CEO of bitcoin Magazine and a key advisor who organized Trump's talk at a bitcoin conference in July. in Nashville. “People are eager to advise and give their opinion.”
The concept of a bitcoin Strategic Reserve has been gaining momentum among Trump advisors and industry leaders. Dennis Porter, CEO and founder of Satoshi Act Fund, an American non-profit organization that advocates for bitcoin adoption, revealed that the team is considering an executive order to establish the SBR.
David Bailey also showed signs of positive momentum, stating on November 15 via x: “SBR is happening.” He highlighted the administration's ability to quickly launch the stockpile: “The experts' verdict is that the president has the authority to create the SBR without Congress and execute a fairly large acquisition program (tens of billions of dollars). To grow we will need Congress, but we can start immediately on a scale similar to MicroStrategy.”
Despite enthusiastic support from industry experts, market skepticism persists. According to Polymarket, a decentralized prediction market platform, the probability of Trump establishing a bitcoin Strategic Reserve is 42%, up from a low of 24% five days earlier. This indicates growing belief, but also highlights lingering doubts about updating the reserve.
The enthusiasm for the Trump administration has already impacted the market, pushing bitcoin to record levels and bringing it closer to the long-awaited milestone of $100,000. The establishment of the SBR could further catalyze market growth and investor confidence.
Who will be on the crypto Council?
Several top executives are positioning themselves to influence the future of US crypto policy through the advisory council. Coinbase CEO Brian Armstrong recently met with Trump, although the details of their conversation remain undisclosed. A source familiar with the matter confirmed that Coinbase is interested in being part of the board.
Circle CEO Jeremy Allaire has also expressed interest. “We look forward to the opportunity to contribute to the dialogue on how to create a regulatory environment that encourages innovation while protecting consumers,” a company spokesperson said.
Former regulatory officials also serve in advisory roles. Heath Tarbert, former chairman of the Commodity Futures Trading Commission (CFTC) and current chief legal officer of Circle, along with Brian Quintenz, former Republican CFTC commissioner and head of policy for a16z crypto, have been consulting with the Trump transition team on crypto policy.
The crypto industry is advocating for several key regulatory changes. These include executive orders granting cryptocurrency companies access to banking services, stopping what they perceive as excessive enforcement actions, and establishing clear regulatory frameworks to encourage innovation.
“It is absolutely the right decision to put together a board of people who understand how the industry should be regulated and how to position it as a strategic asset,” said Nathan McCauley, CEO of crypto platform Anchorage Digital. McCauley has urged Trump's team to reverse the current administration's stance on cryptocurrencies, which has been marked by strict enforcement actions against companies accused of violating securities and anti-money laundering laws.
Kristin Smith, CEO of the Blockchain Association, believes that the creation of the crypto council is a feasible immediate action. “It's something that could be done very quickly,” he said, emphasizing the urgency the industry feels for regulatory clarity.
At press time, bitcoin was trading at $99,245.
Featured image from CNN, chart from TradingView.com
