Trump has done it. The first crypto executive order is here. Trump signed a crypto executive order to make ‘America the world capital of crypto’. What does this mean for the crypto world?
According to the CEO of Morgan Creek Mark Yusko, this crypto executive order paves the road to a strategic Bitcoin or crypto reserve. But which altcoins will make it to the crypto reserve? Well, as per Yusko, the founders of these altcoin projects are building ties with the Trump family, particularly Eric Trump. Let’s find out more about this in the video.
And then Trump announced a $500 billion investment in AI infrastructure in the US. What does that mean for AI crypto projects? We need to find answers to all these questions. Let’s dive in.
A National Digital Asset Stockpile
Trump signing a crypto Executive Order was what the crypto sector was waiting for. This can pave the way for a Strategic Bitcoin Reserve (SBC) or a Strategic Crypto Reserve (SCR). That could include some very popular crypto altcoins. Which ones? This will be something interesting to find out.
Source: X
There will be a ‘Working Group on Digital Asset Markets’. David Sacks will lead this. He’s an early investor in firms like Facebook, Uber, SpaceX, and Airbnb. This workgroup also includes AI. More on this in a moment.
Besides Sacks, this will also include the Secretary of the Treasury and the new SEC Chair and CFTC. However, there are also still a few uncertainties.
For example, there’s no mention of the digital assets held in this reserve. Trump hinted at ‘prioritizing digital coins founded in the US. Bitcoin is not necessarily founded in the US, given that Satoshi is anonymous. However, projects like Solana’s $SOL, Circle’s $USDC, or Ripple’s $XRP are.
To me, a Strategic Bitcoin Reserve makes the most sense. However, Ripple is lobbying heavily for a Strategic Crypto Reserve. Ryan Selkis, founder of Messari, accuses Ripple of buying their way into a Strategic Bitcoin Reserve. Messari is a crypto research platform.
Buying BTC would be like adding digital gold to the US treasury and it could be bundled with new types of bonds.
Buying ETH would be like adding Samsung, SOL like Apple. Good assets maybe, but for a sovereign wealth fund, not a Treasury reserve.
Buying XRP would be fiscal AIDS.
— Ryan Selkis (d/acc) 🇺🇸 (@twobitidiot) January 24, 2025
Altcoins for the Strategic Crypto Reserve
Apart from what everyone has to say, four altcoins seem primed to make it. These are, Ripple’s $XRP, Cardano’s $ADA, Hedera’s $HBAR, and Circle’s $USDC.
The very possible reason is that the founders of these projects are making ties with the Trump family.
This uncertainty can also explain Bitcoin’s current price action. But back to the order. It specifically bans CBDCs. This stops the Fed’s ability to create a CBDC for the time being. This is an area where Ripple is one of the worldwide leaders.
Trump Crypto Exec Order
Agencies are prohibited from establishing or promoting Central Bank Digital Currencies (CBDCs) within the U.S. or abroad.
A President’s Working Group on Digital Asset Markets is established to recommend regulatory and legislative proposals.
The Working…
— db (@tier10k) January 23, 2025
The workgroup now has 180 days to propose (or not) the creation of a “national digital asset” stockpile.
Trump already launched his $TRUMP memecoin. It could light up the fire under this. We may see a price increase. His DeFi project World Liberty Financial’s biggest investment is in Ethereum ($ETH). Keep an eye on Ethereum, its run hasn’t started yet! This and the Crypto Executive Order are as bullish as it can get!
$500 Billion for AI
$500 billion is a lot of money. Well, that’s how much Trump’s administration is investing in US based AI infrastructure. The workgroup I mentioned before, led by Sacks, also looks into AI. Trump called Sacks the AI and crypto czar.
Stargate is the new company that will lead this charge. This should grow AI infrastructure in the US. Three companies will invest $100 billion to get this off the ground. Another $500 billion is ready to pour into Stargate at a later date. This should also flow over to US-based AI projects.
Senator Cynthia Lummis
Senator Cynthia Lummis was already lobbying for crypto during the recent Democratic reign. She is very pro-crypto. She will now chair the Senate Banking Subcommittee on Digital Assets.
Lummis pushed for clear crypto regulations when Operation Choke Point 2.0 was in full progress. For example, she introduced the Lummis-Gillibrand bill. This aims to provide clear guidelines for digital assets.
🚨🇺🇸 Breaking: The Lummis-Gillibrand
“Payment Stablecoin Act” released today April 17th 2024. 💥Senators @SenLummis and @gillibrandny released the bill today.
📢 “We believe it’s crucial for the US to maintain its leadership role, prioritize innovation, and keep tech a… pic.twitter.com/K4Q3khCo3i
— Subjective Views (@subjectiveviews) April 17, 2024
It’s also a well-known fact that she’s a bitcoin supporter. She holds $BTC herself. This positions her as the potential link between TradFi and crypto. Her appointment will give,
- Pro-crypto leadership.
- Regulatory Clarity
- And help position the U.S. as a global leader in digital asset innovation.
The New SEC
The SEC under new leadership is reacting fast. Acting chair Mark Uyeda rescinded SAB 121. This stopped banks from offering Bitcoin custody services. It was part of Choke Point 2.0. The SEC under Gensler issued this in March 2022.
💥BREAKING: The SEC officially rescinds SAB 121, which stopped banks from offering Bitcoin custody services. [@EleanorTerrett]
Banks can now offer Bitcoin services to hundreds of millions of customers. pic.twitter.com/1zm7JYjHe2
— Bitcoin Archive (@BTC_Archive) January 23, 2025
It impacted pretty much all public companies that accepted or dealt with crypto. However, now Banks can connect directly to blockchains as payment networks. This is, again, very bullish.
President Trump also added his share. He called out Bank of America CEO Brian Moynihan to his face. Trump said that BoA should stop debanking conservatives. This was during the World Economic Forum.
Ross Ulbricht
Last but not least, Trump pardoned Silk Road founder Ross Ulbricht. He was serving a life sentence with out parole and spent the last 11 years in jail. This gives another clear signal that there’s a new wind blowing in America’s crypto landscape.
So, what do you expect from the current actions from Trump relating to crypto? Are they bullish or not?
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours.
We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence.
Copyright Altcoin Buzz Pte Ltd.