This article was published on X on February 2, 2025 https://x.com/pumpforgood/status/1886057461481935046
By Felicia Huang, Operation Manager at Pump For Good

Policy Highlights

  1. Executive Order Making Cryptocurrency a National Priority <br data-start="232" data-end="235"/>Trump signed an executive order positioning cryptocurrency as a strategic priority, demonstrating the administration's commitment to fostering a strong digital asset ecosystem. The move aims to streamline regulation and encourage public-private partnerships, ensuring collaboration between innovators and policymakers. The executive order clearly outlines a roadmap to build America's competitive advantage in the global crypto economy.

  2. Establish a dedicated crypto advisory committee <br data-start="376" data-end="379"/>Trump has pledged to establish a dedicated cryptocurrency regulatory advisory committee within the first 100 days of his term. The committee, led by technology executive and venture capitalist David Sacks, aims to develop clear and concise policy guidelines. In addition, former North Carolina congressional candidate Bo Hines has been appointed executive director of the Presidential Digital Asset Advisory Committee. The advisory body will also invite industry leaders, scholars and regulators to participate and provide diverse perspectives.

  3. Establishing a National Reserve of Bitcoin and Digital Assets <br data-start="550" data-end="553"/>The government's plan to establish a Bitcoin reserve shows its recognition of the cryptocurrency's status as a valuable asset and foreshadows long-term institutional trust in blockchain technology. The reserve, managed by the Treasury's Exchange Stabilization Fund, aims to hold at least $21 billion in Bitcoin to diversify the country's assets and hedge against traditional financial risks.
    This strategic reserve mimics the model of gold reserves, which have long been seen as a tool to protect against economic instability. However, the digital nature and volatility of Bitcoin introduce new variables. Unlike gold, which has long been widely recognized as a store of value, the volatility of Bitcoin prices may affect its reliability as a reserve asset. Supporters believe that Bitcoin has unique advantages as a decentralized and inflation-resistant asset that can complement the role of gold; while critics worry that its high volatility and lack of historical verification may weaken its utility. The establishment of Bitcoin reserves may gradually weaken some of the status of gold, heralding a shift in the country's reserve diversification strategy, but gold's traditional status as a stable asset is unlikely to be completely replaced.
    At the same time, the establishment of this reserve could also set a global precedent for other countries, thereby reshaping the international financial landscape and establishing Bitcoin as a mainstream economic tool. So far, the Trump administration has not formally established a national Bitcoin reserve.

  4. Comprehensive Regulatory Reform <br data-start="1000" data-end="1003"/>The government has introduced major regulatory reforms aimed at lowering the barriers to entry for crypto businesses:

    • Removing restrictive SEC accounting regulations makes it easier for businesses to hold digital assets.
    • Terminate Operation Choke Point 2.0 and restore banking operations for crypto companies and exchanges.
    • Promote interstate regulatory coordination, reduce regulatory fragmentation, and provide a clear and predictable regulatory environment.
    • Develop new security and auditing standards for smart contracts and decentralized finance projects to enhance user trust.
    • Develop clear custody and compliance guidelines to encourage institutional investment in digital assets.

  5. Trumpcoin and the potential of Web3

    The launch of the Solana-based meme coin $TRUMP marks an important step in Trump's embrace of cryptocurrency and Web3 monetization strategy. The token, which is backed by CIC Digital LLC and Fight Fight Fight LLC, has rapidly soared in market value, once again highlighting Trump's influence in the meme economy dominated by retail investors. Although the token is positioned as a symbolic digital asset, its value has sparked widespread discussion about conflicts of interest, regulatory issues, and the ethics of promoting personal financial projects by a sitting president.

    In addition to $TRUMP, the government is also exploring Web3 integration, including tokenized assets, blockchain-based voter engagement, and NFT-driven fundraising. The Trump team hinted at the possibility of using crypto donation models and blockchain technology for political mobilization, which is expected to change the way campaign funds are raised and grassroots organizations are organized. In addition, regulatory clarity on NFT and Web3 business models will incentivize broader adoption of tokenized assets across industries.

Insights

Trump's "crypto first" policy marks a historic shift in U.S. financial strategy, positioning the country as a global leader in blockchain innovation. Establishing a national Bitcoin reserve challenges traditional financial norms, and is expected to prompt other countries to follow suit and accelerate Bitcoin's status as a mainstream reserve asset.
This strategy may consolidate the United States' dominance in the digital asset field, but it may also give rise to new economic risks, but one thing is certain: cryptocurrency is no longer a fringe issue, but a core component of U.S. policy.