Bloomberg reports that Trump plans to give priority to crypto by way of an executive order. This action, according to details circulating in the industry, could have a significant impact on agencies and enforcement for several sectors of digital assets.
The US Constitution has checks and balances that limit the Executive Orders. Trump wants to implement the following policies through Executive Orders:
- Declare crypto as an important national priority.
- Establish a crypto advisory council.
- Require agencies to examine digital assets policies
- Stop or delay litigation against cryptocurrency companies.
- Create a Bitcoin national stockpile.
What is this Executive Order and what can it change?
According to Bloomberg’s anonymous sources, the draft order is expected to declare crypto a key initiative and establish an advisory council. The council’s main purpose would be to encourage agencies to collaborate, but it wouldn’t enact any regulations.
Federal Advisory Committee Act is often used to support presidential directives. This act mandates accountability and transparency when new advisory committees are created. A step like this is less likely to face legal obstacles, which allows for the executive to focus more on policy issues related cryptography without needing new legislation.
The directive that agencies review their regulations and strategies for enforcement in relation to digital assets is another component being considered. Internal audits and policies reviews are within executive authorities, especially when producing recommendations or reports is involved.
Similar strategies have been used by previous administrations to raise awareness of emerging issues and encourage coordinated response. The market participants believe that an official review will lead to more uniform approaches from the Treasury Department, Justice Department and other entities responsible for crypto.
The EO may not be able to handle certain policies
Proposals to stop litigation against crypto companies, however, indicate a more controversial approach. The SEC, CFTC and other agencies have mandates which give them a degree of autonomy.
Indirect intervention could conflict with statutory requirements and established prosecutorial standards, raising questions about judicial involvement. The executive has influence over the Department of Justice, but to instruct it to suspend ongoing cases would provoke a lot of legal and political opposition.
Congress will likely scrutinize any plans to expand a Bitcoin inventory held by the government. Most laws require the sale or auctioning of confiscated assets. The proceeds are then transferred to government accounts, or they can be used in law enforcement activities.
Accumulating a long-term reserve of Bitcoin raises questions about the power of the purse since budgets and appropriations lie within Congress’s authority. Some supporters see a large stockpile of Bitcoin as a smart move. They point out that the government has already seized around $20 billion in Bitcoin through investigations. Skeptics claim that formalizing these holdings requires explicit legislative approval due to constitutional restrictions on executive spending.
TLDR;
Specific actions—such as designating crypto as a priority, forming advisory bodies, and ordering agency reviews—fit within standard executive powers. More sweeping endeavors, including halting enforcement across independent agencies or creating a permanent Bitcoin reserve, lean toward matters that require Congress’s cooperation. This distinction could determine the impact of the upcoming order, and whether it goes beyond advisory measures to substantive regulatory changes.
| The following are some of the ways to get started: | EO Power Feasibility |
|---|---|
| Declare crypto as national priority | It is Clearly Possible |
| Establish a crypto advisory council | It is generally feasible |
| Review digital assets policies by agencies | Highly possible |
| Stop or delay litigation against cryptocurrency companies | It is a legal problem |
| Make a Bitcoin stockpile at the national level | The Congressional Approval is required |
Even though the text is not finalized, stakeholder are already preparing guidelines which could change the interaction between the government and the crypto industry by as soon as Monday 20th January.
The implementation will be based on the existing frameworks of agencies and any legal limitations that apply to specific areas such as enforcement or Treasury operations. The extent of the order’s reach remains uncertain, but clarifying the administration’s stance on digital assets may spur closer coordination among regulators and market participants.
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