How soon will we see President-elect Donald Trump strategically reserve Bitcoin in the United States? It may take longer than you think.
Trump’s pick for the SEC, Paul Atkins, has had repercussions on the crypto scene. Atkins is a pro-crypto businessman and former SEC commissioner who represents a sharp break from Gary Gensler’s approach.
If confirmed, his mandate could rewrite the rules on digital asset regulation, tilting the balance in favor of innovation over oversight.
However, don’t count on letting the world go right out of the gate.
Who is Paul Atkins? What could a pro-Crypto SEC mean for the industry and the market?
Paul Atkins knows the SEC like the back of his hand. A Republican commissioner from 2002 to 2008 under George W. Bush, he built a reputation for opposing heavy-handed regulation and fostering a careful dance between oversight and innovation.
During his tenure, Atkins supported proportionality in enforcement, advising that fines to companies should reflect individual wrongdoing rather than be used to make headlines. This mindset aligns with his criticisms of what he sees as the SEC’s aggressive stance under Gensler.
“The SEC must not exclude these very investors from our markets through burdensome regulations,” Atkins said in a past speech.
Gary Gensler destroyed the SEC’s reputation with his failed regulatory enforcement approach.
Paul Atkins will rebuild it. https://t.co/w8oHgEmRru
— Tom Emmer (@GOPMajorityWhip) December 12, 2024
After leaving the SEC, he founded Patomak Global Partners, a consultancy firm specializing in regulatory advice. Notably, Patomak counted FTX as a client during its brief rise, reinforcing Atkins’ controversial but active role in shaping financial innovation.
Day One Changes Unlikely: Donald Trump’s US Bitcoin Reserve Won’t Happen Overnight
For an industry beset by lawsuits and regulatory uncertainty, Atkins’ appointment offers a glimmer of hope. His ties to current Republican commissioners Hester Peirce (commonly known as “Crypto Mom”) and Mark Uyeda suggest that the SEC under Atkins may see a shift toward innovation-friendly policies.
Atkins is also co-president of the Token Alliance, an advocacy group that lobbies for clear crypto regulations.
However, changes will not happen overnight. Existing SEC lawsuits against crypto companies and legal precedents established during Gensler’s tenure will not be easily undone. Atkins would need to build consensus within the agency and the broader regulatory framework to steer the SEC toward a more cryptocurrency-friendly stance.
Oh Gary, how could you do this to me?
pic.twitter.com/OoooQI77ZS
— Elon Musk (@elonmusk) December 12, 2024
While Atkins is clearly pro-cryptocurrency, his ability to implement sweeping reforms will depend on several factors. First, his nomination still requires congressional confirmation, which could become a drawn-out process, given partisan divisions. Additionally, existing regulatory processes and lawsuits, such as those involving Kraken and Ripple, would limit any immediate review.
If Paul Atkins secures the SEC chairmanship, crypto firms, battered by years of friction, could see a landscape that encourages progress rather than punishes it. While the revolution won’t begin overnight, Atkins represents a long play worth betting on as the industry looks to 2025.
Good news: The Texas Bitcoin Reserve shows that states are moving forward
A bill proposing a state-run bitcoin reserve arrived in the Texas House on Thursday, sending crypto circles abuzz. Representative Giovanni Capriglione outlined the plan on X Spaces, fueling rumors that 2025 might just rewrite the industry’s agenda.
Yee Haw, partner! No, it’s a good thing that’s happening over there. Things are good, that’s what I say. Texas, honey!
Taxes, fees and even donations of Bitcoin would fuel the reserve, which the state plans to hold for at least five years. Some see it as a first step by the US Treasury to take notes.
The Bitcoin race is shaping up to be an arms race, involving corporations, states and sovereign nations.
Here’s a theory of how things will go that we detailed more in our weekly Feel good Friday news:
Phase 1: Institutional adoption
Bitcoin has become “digital gold” and major US companies, such as Tesla and MicroStrategy, and financial institutions have set the stage by maintaining Bitcoin as a reserve or investment asset.
Phase 2: ETFs and leverage (the phase we are in now)
Approval of Bitcoin spot ETFs accelerates institutional and retail adoption. ETFs attract trillions of dollars in investments due to their accessibility and perceived safety.
Phase 3: Business integration
And here’s where we’re going: Big companies like Apple, Google, and Amazon will add Bitcoin to their balance sheets. It only takes one to cause FOMO. CFOs justify this move as diversification and alignment with progressive financial trends. BTC could be used for payroll, corporate transactions, and intercompany agreements.
Phase 4: Financialization of Bitcoin
Finally, eventually, we will see Bitcoin-backed securities, derivatives and structured products proliferate in the financial markets. Banks will create products such as mortgages or loans backed by Bitcoin, and Bitcoin will act as collateral for high-risk institutional trading.
Not everything that has been promised for Bitcoin and cryptocurrencies will materialize at once. But with Trump’s pro-crypto lines in the White House and Congress leaning the same way, 2025 is shaping up to be a milestone year for cryptocurrency holders.
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The post How long will it take to create the Bitcoin reserve in the United States? appeared first on 99Bitcoins.