The three main actions in favor of the Bitcoin revolution that Donald Trump must take immediately

Donald Trump made a lot of promises to the Bitcoin community during his 2024 presidential campaign. We even saw him attending a Bitcoin conference in Nashville to secure more votes but above all, get money for his campaign. Donald Trump has talked too much and promised too much. With his inauguration scheduled for January 20, 2025, it is time for Donald Trump to make good on his promises.

Recently, doubts have arisen about Donald Trump’s ability to fulfill his promises. In my opinion, we’ll find out soon. Donald Trump has already paved the way by building a pro-bitcoin administration. However, we will have to see what Donald Trump can pass through executive orders and what he will have to negotiate with the US Congress.

Without taking into account these political balances, which will have a major role, I can already tell you the three main actions in favor of the Bitcoin revolution that Donald Trump must take immediately. Some dream that these strong measures will be announced on the first day of his second term, but I will be more moderate and talk about the first 100 days of his presidency.

1. Cancellation of SAB 121

So far, U.S. banks have borne the brunt of a rule the Securities and Exchange Commission issued in March 2022, known as SAB 121, that requires them to consider the bitcoin and cryptocurrencies they hold as liabilities on their balance sheets. This rule is viewed by the entire industry as a barrier to institutional adoption. In fact, it increases capital requirements and prevents many financial players from participating further in the sector.

This SEC rule should be added to the Biden administration’s list of direct attacks on Bitcoin and cryptocurrencies as part of what is commonly referred to as “Operation ChokePoint 2.0.”

Donald Trump is eagerly awaiting this topic. By appointing pro-Bitcoin management, we can actually ensure that ChokePoint 2.0 does not proceed. Donald Trump could issue an executive order on his first day in the White House to repeal SAB 121. This would be a good way to show that he is doing his best to keep the many pro-bitcoin and crypto pledges he made during his presidential campaign. .

2. America’s strategic Bitcoin reserve

Donald Trump promised during his election campaign to stop sales of Bitcoin held by America during his presidency. This is an urgent issue, as the Biden administration may be keen to sell more before Donald Trump takes office. Maybe it started in the last few days..

Donald Trump could easily decide that America should hold all of these bitcoins. His task will be more difficult to maintain his commitment to creating a strategic reserve of Bitcoin for America. Senator Cynthia Lummis proposed the Bitcoin Act So that America can implement an ambitious plan to buy one million Bitcoin within 4 years.

Several questions arise:

• Could Donald Trump decide to have the US Treasury hold these bitcoins instead of the Fed?
• Could Donald Trump pass an executive order validating Bitcoin law?
• Will Donald Trump succeed in passing the Bitcoin Act if it has to pass through the US Congress?
• How will the massive purchase of Bitcoin over the next four years be financed?

There are many questions that we will not necessarily get answers to within 100 days of Donald Trump’s inauguration. But it will be a topic that will certainly interest the entire industry. Cynthia Loomis suggests that America sell some of its (alleged) gold reserves to buy this Bitcoin. Michael J. suggests Saylor calls for America to print US dollars out of thin air to buy at least 25% of the circulating Bitcoin supply to gain control. No wonder many consider Michael J. Saylor is a complete betrayal of the spirit of the Bitcoin revolution.

Donald Trump should also be careful about such a strategy, which could lead to the start of the third Bretton Woods conference.This is something that America will not be sure of escaping from this amount of advantages it enjoys under the current monetary and financial system.

3. Make Bitcoin transactions tax-free

There is an urgent need to change the rules governing taxation of Bitcoin. Donald Trump himself said during his campaign that it is not possible to make daily purchases with Bitcoin if it triggers a tax event every time. To facilitate the development of Bitcoin as a daily MOE, it is necessary to change the regulations. Michael J. repeats: Saylor says Bitcoin as a Department of Education is a distraction, but he’s wrong. It is essential to the long-term success of the Bitcoin revolution!

The question here is how this more compliant regulation can be translated into the development of Bitcoin as an everyday ministry. Donald Trump could decide to make all transactions worth less than $1,000 tax deductible, for example. This amount can of course be reduced or increased – here’s an example. Donald Trump could decide that all bitcoins he has held for more than a year are tax-free because they are no longer just speculation, but a long-term investment. Some countries already apply such a regulatory framework.

There is a lot to be done in this area, and we have to hope that Donald Trump keeps his promises in this regard, or risk disappointing the Bitcoin community. The moment of truth is fast approaching!