Key Takeaways
- US President Donald Trump has pledged to end the government’s “war on crypto” facilitated by the Biden administration.
- The Trump administration is creating a “Strategic Bitcoin Reserve” and is keen on reversing Operation Choke Point 2.0.
- A successful Strategic Bitcoin Reserve could benefit crypto investors worldwide by legitimizing BTC and potentially increasing the asset’s price.
US President Donald Trump has declared his administration’s commitment to ending the government’s “war on crypto” and pledged to support the digital asset sector.
The US President spoke at the Crypto Summit at the White House soon after signing an executive order to create a Strategic Bitcoin Reserve. Trump strongly criticized his predecessor, Joe Biden, for imposing choking regulations targeting Bitcoin and other cryptocurrencies. He emphasized his administration’s willingness to adopt a crypto-friendly approach to making the US a global leader in the crypto industry.
Bad Decision That Cost the Country Billions of Dollars
The White House crypto summit, organized by US AI and crypto Czar David Sacks, was attended by the crypto industry’s “who-is-who.” The leading participants were Coinbase CEO Brian Armstrong, Kraken co-CEO Arjun Sethi, and House Majority Whip Tom Emmer. Other officials present included Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent, SEC Commissioner Hester Peirce, and CFTC Acting Chair Caroline Pham.
The President lamented about the decision by the Biden administration to sell off tens of thousands of Bitcoin, which he called a “foolish” decision that cost the country billions of dollars. Trump stated:
“In recent years, the U.S. government has foolishly sold additional Bitcoin worth billions, mostly during the Biden administration.”
Use “budget-neutral” ways to accumulate Bitcoin.
According to the White House, a Bitcoin Strategic Reserve will be established and initially host at least 200,000 Bitcoins, mostly seized following court proceedings, valued at over $17 billion. The President’s executive order calls for the US Treasury and Commerce Department to explore accumulating more Bitcoin using “budget-neutral” ways. Trump further stated:
“America will follow the rule that every bitcoin [holder] knows very well: never sell your bitcoin. That’s a little phrase that they have. I don’t know if that’s right or not […], but so far, it’s been right […]. Additionally, my order directs federal agencies to conduct an inventory of all US government’s current crypto assets and determine how they can be transformed into Treasury assets.”
After the summit, Trump’s Office of the Comptroller of the Currency (OCC) issued guidance allowing banks to hold cryptocurrency and asking them to do their due diligence around risk. This was another signal that Trump’s Administration will not regulate the industry very closely. “This industry was kind of unfairly suppressed from reaching its potential in the U.S. system,” Nazarov says. “They want to go completely the other way.”
End Operation Choke Point 2.0
Donald Trump also addressed issues concerning “debanking,” calling an end to the infamous “Operation Choke Point 2.0.” The President accused Biden’s administration of pushing banks to cut off crypto companies from banking services, which made it difficult for businesses to conduct transactions. He pledged to reverse those policies, adding that he would ensure fair banking access for crypto companies.
Immediately after the summit, the White House Office of the Comptroller of the Currency (OCC) issued guidance allowing banks to hold cryptocurrency. He asked the banks to use their due diligence around the risks associated with crypto, highlighting the willingness to avoid overregulating the crypto industry. Sergey Nazarov, co-founder of Chainlink, who attended the summit, stated:
“There’s a significant shift and huge amounts of support […] this industry was kind of unfairly suppressed from reaching its potential in the U.S. system […] they want to go completely the other way.”
Conclusion
In the last few weeks, Donald Trump’s administration has rolled back several lawsuits and investigations against crypto personalities and businesses. Moreover, the Senate has voted to eliminate a Biden-era regulation that required crypto companies to send users’ personal information to the IRS. Experts believe the summit has shown the way toward creating a regulatory framework for cryptocurrencies.
