- The Crypto industry wants Donald Trump to ban the development of a US CBDC.
- The community is in support of a strategic Bitcoin reserve over a CBDC.
- Donald Trump is expected to for a White House Crypto Council for policy advice.
The cryptocurrency industry wants President Donald Trump to ban the creation of the US Central Bank Digital Currency (CBDC), commonly referred to as the Digital Dollar.
This call to action comes as part of a broader initiative to steer the US financial policy towards embracing decentralized digital assets over government-controlled currencies.
Halting the US CBDC project
Recent reports, including insights from Fox Business journalist Eleanor Terret, suggest that Trump might soon sign an executive order to halt the development of a US CBDC.
This anticipation is based on Trump’s previous campaign promises where he vowed to protect Americans from what he described as potential “government tyranny” through CBDCs. His stance aligns with the crypto community’s concerns about privacy and government oversight over individual financial activities.
The demand isn’t just for a ban on CBDCs; there’s a parallel push for establishing a strategic Bitcoin reserve. This proposal, supported by industry leaders like Michael Saylor and platforms like Coinbase, would see the US government recognizing Bitcoin as a reserve asset, potentially using it to mitigate the massive $36 trillion national debt.
Wyoming Senator Cynthia Lummis has been a vocal proponent of this idea, advocating for a more Bitcoin-friendly US policy.
Formation of a White House Crypto Council
Further, the crypto industry is looking forward to the formation of a White House Crypto Council, which is expected to be composed of approximately 20 key figures from the sector. This body would advise on digital asset policies, help craft a crypto-friendly regulatory environment, and work closely with Congress on relevant legislation.
Trump’s administration has already shown preliminary steps in this direction by appointing David Sacks as the White House’s crypto czar, signalling a commitment to fostering innovation in the crypto space.
Another anticipated move from Trump’s administration includes the potential repeal of Staff Accounting Bulletin 121 (SAB 121) by the SEC leadership, which would further ease regulations around crypto custody by banks.
Moreover, there are expectations that US banks will soon be allowed to offer crypto trading services, integrating cryptocurrencies more deeply into traditional finance.
The crypto world also watches closely for any action on Trump’s promise to commute the sentence of Ross Ulbricht, the Silk Road founder, within his first days in office. This move would not only be symbolic but could also signal a major shift in how the government views and treats cryptocurrency-related convictions.
As the industry awaits these policy shifts, the market has shown positive reactions, with Bitcoin (BTC) experiencing significant price surges post-election, reflecting the market’s anticipation and hope for a more crypto-friendly US under President Donald Trump.
All eyes now remain on the forthcoming actions, as promises made during political campaigns do not always translate into immediate policy changes.