President-elect Donald Trump’s proposed “Crypto Advisory Council” is expected to establish his promised “Strategic Bitcoin Reserve,” according to Reuters reported on Nov. 21, citing sources familiar with the matter.
While presidential advisory councils are not new, a dedicated crypto council would be unprecedented and reflect the rapid evolution of the sector since Bitcoin’s inception in 2008. Blockchain Association CEO Kristin Smith emphasized the urgency of forming the council, saying it is “something that Trump could do very quickly.”
The council will also advise on crypto policy and work with Congress on crypto legislation.
The report emphasized that the council could fall under the White House National Economic Council or operate independently.
Major US companies including Coinbase, Paradigm and Andreessen Horowitz’s crypto arm a16z, Ripple, Kraken and Circle are seeking a seat on the board, according to industry insiders..
David Bailey, CEO of Bitcoin Magazine, a key organizer behind Trump’s July appearance at a Bitcoin conference in Nashville, said:
“It is being worked out, but I expect leading executives from the US Bitcoin and crypto companies will be represented.”
Excitement over Trump’s pro-crypto stance has already boosted Bitcoin (BTC) prices, which hit a new all-time high of $99,100 on November 21.
Bitcoin Reserve Idea Gains Ground
Dennis Porter, founder of the Satoshi Act Fund discusses the introduction legislation in Texas on a ‘Strategic Bitcoin Reserve’.
The Texas move is Porter’s latest attempt to introduce a dedicated Bitcoin reserve to a US state. On November 14, Pennsylvania, through Representative Mike Cabell, submitted a bill to create a BTC reserve using the $7 billion sovereign wealth fund.
The proposal suggests an initial allocation of up to 10% in Bitcoin, but also recognizes that a smaller exposure of 1% to 5% could be a more appropriate starting point.
After Pennsylvania’s proposal, Porter stated that ten more US states are likely to follow suit this year, with Texas possibly being the first.
Additionally, he previously told CryptoSlate that state governments are rushing to pass legislation establishing their own BTC reserves as newly elected President Donald Trump’s administration considers an executive order to formalize the issue.
The idea of a strategic Bitcoin reserve gained momentum after Trump’s election. During his presidential campaign, he showed a pro-crypto stance one of his promises was to create a BTC reserve in the US Treasury Department.
This idea was quickly supported by pro-crypto politicians, such as Senator Cynthia Lummis legislation introduced for such a proviso called “The Bitcoin Act” and believes Trump could approve it in his first 100 days at the White House.
As a Porter reportedEven BlackRock, the world’s largest asset manager, endorses the idea of a BTC reserve in the US.
Policy and supervision
The council will likely work with regulators, including the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and Treasury, to craft crypto policies and streamline enforcement efforts.
Trump’s team is also reportedly considering creating a “crypto czar” role to lead the board, with candidates including former CFTC chairman Heath Tarbert, ex-commissioner Brian Quintenz and former SEC chief Christopher Giancarlo under consideration .
The move comes as Trump promises to reverse President Joe Biden’s tough enforcement actions. The administration is expected to prioritize executive orders that guarantee crypto companies’ access to banking services, halt enforcement actions, and position the industry as a strategic economic asset.
Ethical concerns
Critics, including consumer advocacy groups, warn that the crypto industry does not strongly influence policymaking and warn of potential conflicts of interest.
Some ethical considerations can delay appointments, although industry leaders argue that experienced voices are essential to crafting effective regulations.
Nathan McCauley, CEO of Anchorage Digital, stated:
“It is absolutely a wise choice to put together a board of people who… understand how the industry should be regulated and how the industry should be seen as a strategic asset.”