Bitcoin Rebounds On Report Of Trump's Day 1 Pro-Crypto Executive Order

Bitcoin surged Tuesday night following a report that incoming U.S. President Donald Trump will issue a pro-cryptocurrency executive order within the first few hours of his White House re-entry.

The world's largest cryptocurrency increased by 3% Tuesday night to trade above $97,000 following the news, signaling growing optimism that the new president will stay true to his campaign promises to Bitcoin and the broader crypto space.

EO on Crypto by Day 1?

The 45^th U.S. president and 47^th too, is expected to issue a crypto-related executive order within the first few hours of his second presidency, Decrypt reported Tuesday, citing sources familiar with the matter.

One source said the first crypto EO will establish a presidential crypto council that will involve some 20 industry leaders, likely founders or executives within the industry.

Two sources said the executive order will likely include a provision that instructs the Securities and Exchange Commission (SEC) to drop Staff Accounting Bulletin 121 (SAB 121) that discourages banks in the country from holding digital assets in their balance sheets.

Sources further revealed that the incoming president's transition team floated a draft of a comprehensive crypto-centric EO in the weeks after the 2024 U.S. elections.

Among the supposed proposed changes under the Trump administration is a reformative recommendation to mandate the SEC and Commodity Futures Trading Commission (CFTC) to establish a working group that should get regulators and industry players on the same page.

Other more comprehensive reforms are expected to take time, given the complexities around regulation and blockchain technology.

If Trump does issue an executive order for a crypto council, it aligns with his December move of appointing Bo Hines to lead a "Crypto Council" that should help digital asset industry leaders receive "the resources they need to succeed."

Prominent industry players such as Cardano blockchain co-founder Charles Hoskinson and MARA Holdings chairman and CEO Fred Thiel congratulated Hines at the time.

However, smaller crypto holders and users were unsure how to feel about Hines being appointed to such a critical position, with many asking what experience he has had in blockchain and crypto.

Will Trump Issue an Executive Order for a $BTC Reserve?

News of a crypto-focused executive order on Trump's first day as president comes amid anticipation for a potential national Bitcoin strategic reserve.

Trump has not been very vocal about a BTC reserve in recent days, but in the lead-up to the elections and after, Trump ally Sen. Cynthia Lummis has said she will push for a Bitcoin reserve.

It remains to be seen whether Lummis and Trump will be able to pull off a Bitcoin strategic reserve and whether a crypto council will be beneficial for the broader crypto space.

Originally published on IBTimes