Emily Walker
Donald Trump’s transition team is reportedly planning to create a national Strategic Bitcoin Reserve (SBR). This initiative includes forming a crypto advisory council aimed at revising U.S. policies regarding digital assets, according to a report by Reuters here.
Leading cryptocurrency companies like Ripple, Kraken, Circle, and venture capital firms such as Paradigm and Andreessen Horowitz’s crypto division a16z are competing for positions on this council, which is likely to be part of the White House’s National Economic Council or another executive branch entity.
The Potential Emergence of a Strategic Bitcoin Reserve
David Bailey, CEO of Bitcoin Magazine and a significant advisor who arranged Trump’s appearance at a Bitcoin conference in July, mentioned that there is growing eagerness from major Bitcoin and crypto executives to be involved. “People are eager to advise and give input,” he stated.
The concept of creating a Strategic Bitcoin Reserve is gaining traction among Trump’s advisors and industry professionals. Dennis Porter, founder of the Satoshi Act Fund—a nonprofit advocacy group for Bitcoin—indicated they are contemplating an executive order to launch the SBR.
On November 15, David Bailey expressed confidence by stating that “SBR is happening” and highlighted the administration’s ability to initiate the reserve quickly. “The consensus from experts is that the President can establish the SBR without Congressional approval and implement a substantial acquisition program worth tens of billions. To expand further, Congressional support would be necessary, but we can start immediately at a scale similar to MicroStrategy,” he added.
While there is notable enthusiasm from industry leaders, there remains skepticism in the market. A decentralized prediction market, Polymarket, shows that the likelihood of Trump creating the Strategic Bitcoin Reserve has increased to 42%, after previously being as low as 24% just five days earlier. This suggests a rising belief in the initiative while also underscoring uncertainties surrounding its realization.
The excitement surrounding the Trump administration has already buoyed the market, pushing Bitcoin towards new heights and bringing it closer to the long-awaited $100,000 mark. The creation of the SBR could further enhance market expansion and investor trust.
Members of the Crypto Council
Key executives are positioning themselves to shape U.S. cryptocurrency policy through the advisory council. Notably, Coinbase CEO Brian Armstrong had a meeting with Trump, though the details of this conversation have not been revealed. A source confirmed that Coinbase is keen on joining the council.
Circle’s CEO, Jeremy Allaire, has also shown interest, stating, “We look forward to contributing to discussions on creating a regulatory environment that fosters innovation while safeguarding consumers,” according to a company representative.
Former regulatory officials are also taking on advisory roles. Heath Tarbert, the former Chair of the Commodity Futures Trading Commission (CFTC) and currently Chief Legal Officer at Circle, along with Brian Quintenz, a former Republican CFTC commissioner and Head of Policy for a16z crypto, are advising Trump’s transition team on cryptocurrency policy.
The crypto industry is calling for several important regulatory reforms, including executive orders ensuring banking access for crypto firms, ceasing perceived overreach in enforcement, and establishing clear regulations that promote innovation.
Nathan McCauley, CEO of Anchorage Digital, stated, “Forming a council comprising individuals who understand the necessary regulation of the industry and its potential as a strategic asset is a wise decision.” He urged the Trump team to reconsider the previous administration’s strict stance on cryptocurrency, which was characterized by rigorous enforcement against companies violating securities and anti-money laundering regulations.
Kristin Smith, CEO of the Blockchain Association, believes the establishment of the crypto council is a practical and immediate measure. “This is something that could be accomplished quickly,” she remarked, reflecting the industry’s urgent need for regulatory clarity.
As of now, Bitcoin is trading at $99,245.
