The incoming administration of President-elect Donald Trump is reportedly considering the creation of a national Strategic Bitcoin Reserve (SBR). This initiative is part of a broader plan to establish a crypto advisory council that will reassess US policies on digital assets, as reported by Reuters.
The Emergence of a Strategic Bitcoin Reserve
The idea of a Strategic Bitcoin Reserve is gaining traction among Trump’s advisors and key figures in the crypto industry. David Bailey, CEO of Bitcoin Magazine and a prominent advisor who facilitated Trump’s appearance at a Bitcoin conference in Nashville, believes that significant figures from America’s leading Bitcoin and crypto companies will be involved. “People are eager to advise and give input,” Bailey noted.
Dennis Porter, CEO and founder of the Satoshi Act Fund, a nonprofit organization promoting Bitcoin adoption, indicated that an executive order to establish the SBR is under consideration. David Bailey confirmed the positive momentum, asserting on November 15 via X, “SBR is happening.” He emphasized that the administration can initiate the reserve without congressional approval, potentially launching a substantial acquisition program.
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Despite enthusiastic support from industry insiders, skepticism remains. According to Polymarket, a decentralized prediction market platform, the probability of Trump’s administration establishing a Strategic Bitcoin Reserve has increased to 42%, up from 24% five days earlier. This rise signals growing optimism but also underscores persisting doubts about the reserve’s feasibility.
The anticipation surrounding the Trump administration’s potential actions has already influenced the market, driving Bitcoin to record highs and edging it closer to the much-discussed $100,000 milestone. Establishing the SBR could further fuel market growth and bolster investor confidence.
Potential Members of the Crypto Advisory Council
Several high-profile executives are positioning themselves to shape the future of US crypto policy through the advisory council. Coinbase CEO Brian Armstrong recently met with Trump, although the specifics of their discussion remain confidential. A source with knowledge of the meeting confirmed Coinbase’s interest in joining the council.
Jeremy Allaire, CEO of Circle, has also expressed interest in contributing. “We look forward to the opportunity to contribute to the dialogue on how to create a regulatory environment that fosters innovation while protecting consumers,” a company spokesperson stated.
Former regulatory officials are also advising on crypto policy. Heath Tarbert, former Chair of the Commodity Futures Trading Commission (CFTC) and current Chief Legal Officer at Circle, along with Brian Quintenz, former Republican CFTC commissioner and Head of Policy for a16z crypto, have been consulting with Trump’s transition team.
The crypto industry is advocating for several regulatory changes, including executive orders that ensure crypto companies access banking services, curtail perceived excessive enforcement actions, and establish clear regulatory frameworks to promote innovation.
Nathan McCauley, CEO of Anchorage Digital, a crypto platform, emphasized the importance of assembling a council of knowledgeable individuals to regulate the industry effectively and position it as a strategic asset. McCauley has urged Trump’s team to reconsider the current administration’s stringent enforcement actions against companies accused of violating securities and anti-money laundering laws.
Kristin Smith, Chief Executive of the Blockchain Association, believes that forming the crypto council is an achievable immediate action. “It’s something that could be done very quickly,” she said, highlighting the industry’s urgent need for regulatory clarity.
At the time of reporting, Bitcoin was trading at $99,245, approaching its anticipated milestones.
