US Bitcoin Reserve Will Trigger Global BTC Arms Race: Trump Crypto Executive Order Plans Explained

US Bitcoin Reserve Will Trigger Global BTC Arms Race: Trump Crypto Executive Order Plans Explained

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Donald Trump’s plan to create a US Bitcoin reserve through a Trump executive order could start a global cryptocurrency arms race.

Upon his return to the presidency in January 2025, Donald Trump was expected to significantly impact Bitcoin and cryptocurrencies in general through a series of executive orders.

Trump himself is expected to be the first “crypto president” in the United States. A popular promise among the cryptocurrency community was Trump’s pledge to fire Gary Gensler, the current SEC chairman, on his first day in office, especially in light of the crypto community’s dissatisfaction with Gensler’s regulatory approach.

Trump’s promise to comprehensively overhaul cryptocurrency regulation will cement the United States’ role as a global leader in digital assets. MAGA Man’s Promises Have Sent Prices To Surge .cwp-coin-chart svg path {Stroke-width: 0.65 !important; }























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XRP and Solana are on an upward trajectory.

People in the cryptocurrency space are now speculating that this could lead to a global Bitcoin arms race.

(Bitcoin Dollar)

Donald Trump’s plans to create a US Bitcoin reserve through executive order could start a global cryptocurrency arms race

One of the most talked about initiatives is the creation of a “Bitcoin Strategic Reserve.” This concept would lead to the Trump-led US government amassing a national stockpile of Bitcoin, classifying it as a strategic reserve asset.

The Bitcoin Policy Institute has even drafted an executive order for this purpose, and the Treasury Department could invest up to $21 billion annually over five years to accumulate Bitcoin. This Trump move positions Bitcoin as a hedge against inflation and geopolitical risks, just like gold reserves.

Before all of this Trump-driven bullishness, the US government already owned a significant amount of Bitcoin, most of it from criminal seizures. This existing cache could serve as the basis for the new reserve.

Trump’s order will legitimize Bitcoin in the eyes of old-school finance. This will lead to an increase in the value of Bitcoin, and governments around the world will follow.

This is especially true for El Salvador and Argentina, which are two Bitcoin cryptocurrency countries. Countries like China and Russia will likely increase their Bitcoin reserves, leading to a bidding war for Bitcoin on the open market.

This council will advise the government on matters related to digital assets, with the aim of formalizing the relationship between the US government and the cryptocurrency sector.

Furthermore, the council will include industry leaders from different digital asset companies. Among these leaders could be figures such as the rumored David Sachs, who has been mentioned as a potential “AI and crypto czar” for this initiative.

Trump’s new council will advocate for industry policy priorities, influencing regulations, taxes and the financial integration of cryptocurrencies into mainstream retail commerce.

Meanwhile, US Senator Cynthia Lummis supported this initiative. It has been an advocate for clearer regulations for cryptocurrencies, which may help navigate the legislation needed to support such a reserve.

Loomis has openly supported Trump’s proposal to create a strategic reserve for Bitcoin. It has proposed that the United States acquire 1 million bitcoins over five years, representing about 5% of the total bitcoin supply, and hold them for at least 20 years.

To address “de-banking,” where cryptocurrency companies struggle with banks over regulation, Trump is proposing an executive order. These orders guide regulators to rethink their approach to cryptocurrencies. This aims to ease regulatory pressures on banks.

Thus, he seeks to make finance more welcoming to cryptocurrency businesses. Historically, these regulations have kept banks away from cryptocurrencies. This initiative will open more doors for cryptocurrency companies in the United States.

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Donald Trump’s cryptocurrency strategy includes significantly revising the regulatory framework. This includes the possibility of dismantling or amending regulations, such as the SEC’s Staff Accounting Bulletin (SAB) 121, which states that banks that hold cryptocurrencies for clients must account for these assets as liabilities.

By changing these rules, Trump aims to make dealing with digital assets more attractive for financial institutions, freeing them from restrictions imposed by unfavorable accounting practices.

Furthermore, through executive orders, Trump plans to direct agencies like the SEC and CFTC to promote friendlier regulation of cryptocurrencies. These changes could dramatically change how financial institutions interact with digital assets.

The goal is to foster a more welcoming environment for the cryptocurrency industry. Ultimately, this could lead to more supportive regulation of Bitcoin and cryptocurrencies.

The cryptocurrency community has seen this development as a bullish sentiment in the cryptocurrency market. After this announcement, the response was immediate. Bitcoin .cwp-coin-chart svg path { Stroke width: 0.65! important; }























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It pumped to $103,000 this morning, and some major cryptocurrencies like XRP and Solana are showing the same bullish trend.

explores: 10 High Yielding Coins: Cryptocurrency Forecast for 2025

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