President-elect Donald Trump’s transition team is reportedly set to implement the establishment of a national Strategic Bitcoin Reserve (SBR). At the middle of this development is the formation of a crypto advisory council to revise US policy on digital assets, as Reuters reports.
Major crypto firms are vying for seats on the council, including Ripple, Kraken, Circle, and enterprise capital firms like Paradigm and Andreessen Horowitz’s crypto arm a16z. The council is anticipated to be housed inside the White House’s National Economic Council or a separate executive apparatus.
Strategic Bitcoin Reserve Could Grow to be Real
“It’s being fleshed out, but I anticipate the leading executives from America’s Bitcoin and crypto firms to be represented,” said David Bailey, CEO of Bitcoin Magazine and a key advisor who arranged for Trump to talk at a July Bitcoin conference in Nashville. “Persons are desperate to advise and provides input.”
The concept of a Strategic Bitcoin Reserve has been gaining momentum amongst Trump’s advisors and industry leaders. Dennis Porter, CEO and founding father of the Satoshi Act Fund—a US nonprofit advocating for Bitcoin adoption—revealed that the team is considering an executive order to determine the SBR.
David Bailey also signaled positive momentum, declaring on November 15 via X, “SBR is going on.” He emphasized the administration’s capability to initiate the reserve promptly: “The decision from the experts is the President has the authority to determine the SBR without Congress and implement a pretty big acquisition program (tens of billions of $). To go larger we’ll need Congress, but we are able to start immediately at a MicroStrategy-esque scale.”
Despite the enthusiastic support from industry insiders, market skepticism persists. In response to Polymarket, a decentralized prediction market platform, the probability of Trump establishing a Strategic Bitcoin Reserve stands at 42%, up from a low of 24% five days earlier. This means growing belief but in addition highlights lingering doubts in regards to the reserve’s actualization.
Excitement over the Trump administration has already impacted the market, pushing Bitcoin to record highs and edging it closer to the long-anticipated $100,000 milestone. The establishment of the SBR could further catalyze market growth and investor confidence.
Who Will Be On The Crypto Council?
Several top executives are positioning themselves to influence the long run of US crypto policy through the advisory council. Coinbase CEO Brian Armstrong recently met with Trump, though details of their discussion remain undisclosed. A source aware of the matter confirmed that Coinbase is concerned about being a part of the council.
Circle CEO Jeremy Allaire has also expressed interest. “We stay up for the chance to contribute to the dialogue on how one can create a regulatory environment that fosters innovation while protecting consumers,” an organization spokesperson noted.
Former regulatory officials are playing advisory roles as well. Heath Tarbert, former Chair of the Commodity Futures Trading Commission (CFTC) and current Chief Legal Officer at Circle, together with Brian Quintenz, former Republican CFTC commissioner and Head of Policy for a16z crypto, have been consulting with Trump’s transition team on crypto policy.
The crypto industry is advocating for several key regulatory changes. These include executive orders guaranteeing crypto firms access to banking services, halting what they perceive as overreaching enforcement actions, and establishing clear regulatory frameworks to encourage innovation.
“It’s absolutely the sensible selection to place together a council of people that understand how each the industry should be regulated and how one can situate the industry to be a strategic asset,” said Nathan McCauley, CEO of crypto platform Anchorage Digital. McCauley has urged the Trump team to reverse the present administration’s stance on crypto, which has been marked by stringent enforcement actions against firms accused of flouting securities and anti-money laundering laws.
Kristin Smith, Chief Executive of the Blockchain Association, believes that organising the crypto council is a feasible immediate motion. “It’s something that could possibly be done in a short time,” she said, emphasizing the urgency felt inside the industry for regulatory clarity.
At press time, Bitcoin traded at $99,245.
Featured image from CNN, chart from TradingView.com