Original author: Will Canny
Original title: Trump's Biggest Boon to Crypto Would Be Passing the Bitcoin Act: CoinShares
Original source: Coindesk
Compiled by: Koala, Mars Finance
Reports indicate that under the proposal, Bitcoin will be established as a strategic reserve asset, allowing the government to purchase up to 5% of the total supply of cryptocurrencies.
Reports suggest that the (Bitcoin Act) will provide a tremendous boost to the industry.
CoinShares stated that if the bill passes, Bitcoin will have a reserve status similar to that of gold.
The asset management company indicated that the passage of such legislation would generate significant interest from governments and institutions in Bitcoin.
Asset management company CoinShares stated on Wednesday in a research blog that the Donald Trump administration may create a more favorable environment for cryptocurrencies, with one of the most anticipated developments being the potential passage of the (Bitcoin Act).
'This proposal will establish Bitcoin as a strategic reserve asset, and the U.S. government will acquire 5% of the total supply of Bitcoin,' wrote CoinShares research director James Butterfill.
This would grant Bitcoin (BTC) — the original cryptocurrency — a status similar to that of gold. The report stated that having a recognized status within national reserves would also provide it with greater legitimacy.
U.S. Senator Cynthia Lummis (R-Wyo.) introduced a bill earlier this year calling for the establishment of a strategic Bitcoin reserve, aiming to reduce the national debt by purchasing 1 million Bitcoins over five years. The bill, titled (Optimizing National Investment to Promote Innovation, Technology, and Competitiveness (Bitcoin) Act), was submitted to the Senate in July.
President-elect Trump promised to establish a Bitcoin reserve before the election, and Lummis reaffirmed the plan after winning.
'If implemented, the Bitcoin Act could generate tremendous interest from institutions and governments in Bitcoin, potentially accelerating its growth and pushing its value to new heights,' Butterfill wrote.
CoinShares points out that Trump has consistently criticized the U.S. Securities and Exchange Commission (SEC) and its chairman Gary Gensler, particularly regarding the agency's stance on cryptocurrencies. His administration is expected to appoint a new SEC leader, which could lead to a period of more favorable regulation for cryptocurrencies.
Brokerage Canaccord states that 'a change in the SEC's attitude and the passage of a regulatory framework for the crypto industry' could lead to broader adoption of digital assets by mainstream financial services.
The brokerage notes that while the president cannot fire SEC commissioners, a reorganization may occur, and Hester Peirce will be another successor supportive of cryptocurrencies, as stated in a research report on Wednesday.
Canaccord stated that if these changes occur at the SEC, the entire industry would benefit, especially Coinbase (COIN) and Galaxy Digital (GLXY).
