Donald Trump Reportedly Open To US Crypto Reserve As Bitcoin Reserve Chatter Gathers Steam

The cryptocurrency market is experiencing a surge of optimism following signals of a pro-crypto policy shift from the incoming administration under President-elect Donald Trump.

Industry Cheers Pro-Crypto Pivot…

Key figures and investors in the crypto space have expressed relief at the anticipated policy change, buoyed by appointments of crypto-friendly individuals to prominent positions, including David Sacks as AI and crypto czar, and Paul Atkins as the nominee for SEC Chair.

These moves, coupled with expectations of executive orders designed to establish a Bitcoin reserve, according to New York Post and halt debanking practices, signal a new era for the industry in the US.

Frank Chaparro, an early Bitcoin BTC/USD investor, emphasized the magnitude of this shift, describing it as “a seismic change in the approach and tone of the government.”

He added that banks, which were previously discouraged from working with crypto firms, are expected to become active participants in the sector.

Previously, many startups, facing regulatory hurdles and financial barriers, were forced to move their operations outside of the US. Now, this trend is expected to reverse with firms looking to move back, or expand into the US market.

The overall mood within the crypto industry is one of optimism, as many anticipate a period of growth and innovation.

Also Read: Decentralized Finance Will Reshape The Internet, Crypto Founder Says

…But Not Everyone Agrees

However, with this enthusiasm comes debate regarding specific proposals, such as the nature of the proposed strategic reserve and what kind of digital assets it would prioritize.

While there is a general consensus that the change in administration will improve the crypto space in the U.S., there are some varied views on how the implementation should work.

Many are anticipating the forthcoming executive orders and the details it will contain, as this will provide clarity on many of the questions being raised in the market.

The market is also witnessing events such as the upcoming Crypto Ball in Washington D.C. which will be sponsored by key figures in the crypto space, which underscores the anticipation of a positive future for the crypto industry.

Alexander Grieve, VP of Government Affairs at Paradigm, cautioned against taking press narratives at face value, urging stakeholders to wait for official communication directly from the President and his staff before making assumptions.

David Bailey, CEO at Bitcoin Magazine, also expressed skepticism, particularly regarding proposals to favor U.S.-based digital assets.

Strategic Bitcoin Reserve Interest On The Rise

Hunter Horsley, CEO of Bitwise, highlighted the growing institutional interest in Bitcoin, saying that, "Nation-states are now asking about Bitcoin ETFs and considering shifting foreign reserves into BTC."

Meanwhile, Senator Cynthia Lummis has raised concerns about the U.S. Marshals Service’s plans to sell nearly 70,000 Bitcoin that were previously seized.

She has formally requested detailed information about this planned sale, citing potential losses and questioning the wisdom of liquidating such assets given the new administration’s pro-crypto stance.

Her letter raises concerns about transparency, decision-making processes and long-term strategic planning regarding these Bitcoin holdings.

Read Next:

• Coinbase Launches Bitcoin-Backed Loans For US Users

Image: Shutterstock