How Trump can deliver on big promises made to the crypto industry
Donald Trump’s second term as president will launch the crypto world into uncharted territory, with the occupant of the Oval Office now committed to supporting the industry and its investors.
Trump made a lot of promises to crypto enthusiasts in 2024 as he pledged to make the United States the “ crypto capital of the planet ,” and that optimism helped push the value of bitcoin ( BTC-USD ) above $100,000.
And as the president-elect is set to take office and is expected issue a crypto-focused executive order , Trump appears well on his way to deliver on some of his key pledges to the industry.
"A lot of what the industry actually wants can be solved immediately with personnel changes," said Cody Carbone, president for the Digital Chamber, a crypto advocacy group.
Trump promised to fire SEC Chair Gary Gensler, a longtime foe of the industry, and replace him with a new chairman "who believes America should build the future, not block the future."
In November, Gensler saved Trump the trouble by announcing his resignation. The Trump transition team then nominated Paul Atkins , a lawyer well-regarded by the crypto industry, to become the agency's new head.
Atkins must still be confirmed by the Senate before assuming the role, and some key Democrats have already signaled their possible support. If confirmed, Atkins could pull back on the agency's lawsuits against major crypto firms such as Coinbase ( COIN ) and Kraken.
He can also scrap a piece of accounting guidance known as SAB 121 that poses a significant roadblock for banks and broker-dealers seeking to hold crypto in custody for clients.
Another easy promise to deliver should be Trump's vow to stop the launch of a US central bank digital currency (CBDC), which the Federal Reserve has explored but made no decision on pursuing.
"I see no reason for the US to have a central bank digital currency," US Treasury nominee Scott Bessent said when asked about the technology during his Senate confirmation hearing.
Another promise Trump can act on immediately is a crypto presidential advisory council.
This council will be crucial to helping pull off the president's more difficult promises. It is already stacked with his new AI and crypto czar David Sacks and former college football player Bo Hines, as well as industry executives.
"Their task will be to design transparent regulatory guidance for the benefit of the entire industry, and they will get it done in 100 days," Trump said at a bitcoin conference in July.
Perhaps the toughest task will be to convince Congress to pass more favorable regulations governing the world of digital assets, thus providing more clarity about which agency has what responsibility for oversight.
The GOP does control the House and Senate, but with slim majorities, making quick action more difficult.
Another challenge could be to establish a "strategic national bitcoin stockpile" that proponents argue could help stabilize the US economy, strengthen the US dollar, and even eventually help pay down some of the $35 trillion in national debt.
What Trump can do immediately on that front is order the US government not to sell a stash of roughly 200,000 bitcoin it has acquired through criminal seizures and other forfeitures.
What would need Congressional approval are further steps proposed by Senator Cynthia Lummis, which would have the Federal Reserve actually buy more bitcoin using 1970s-era certificates for gold reserves.
Federal Reserve Chair Jerome Powell said in December the central bank has no desire to be involved in any government effort to stockpile large amounts of bitcoin.
"We’re not allowed to own bitcoin. The Federal Reserve Act says what we can own, and we’re not looking for a law change," Powell said at a press conference.
"That’s the kind of thing for Congress to consider, but we are not looking for a law change at the Fed."
David Hollerith is a senior reporter for Yahoo Finance covering banking, crypto, and other areas in finance .