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Bitcoin advocate and entrepreneur Anthony Pompliano has outlined three strategic moves that could significantly increase Bitcoin’s adoption in the U.S., amid evolving regulatory landscapes.
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His proposals highlight an urgent need for reform, reflecting a growing sentiment among financial experts regarding cryptocurrencies’ potential in the national economy.
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According to Pompliano, “If Trump does these three things, all of a sudden Bitcoin’s going much, much higher,” emphasizing the impact of policy changes on market dynamics.
Anthony Pompliano reveals three key policy changes that could elevate Bitcoin’s status in the U.S. economy, fostering broader adoption and stability.
3 Ways Donald Trump Could Help Bitcoin Soar
Pompliano argues that one of the first vital changes is to repeal SAB-121, an accounting rule that categorizes digital assets like Bitcoin as liabilities. This rule impacts how banks account for Bitcoin on their balance sheets, discouraging them from custodying the asset.
“If you’re a bank, you don’t want to custody an asset that counts as a liability,” Pompliano elaborated. The elimination of this rule could incentivize banks to hold Bitcoin, enhancing its security and attracting institutional investors.
In addition to this, Pompliano proposes the establishment of a National Bitcoin Strategic Reserve. He highlights the significant amount of Bitcoin already on the federal balance sheet and suggests that the U.S. government should actively purchase more Bitcoin to fortify its economic standing.
“It’s good for the U.S. economy over the long run for the United States to have more Bitcoin,” he remarked, emphasizing its potential benefits for various economic segments, from individuals to corporations.
Lastly, Pompliano addresses Bitcoin’s tax treatment. Currently classified as property, transactions using Bitcoin prompt capital gains tax, a position he argues is unfair and impractical.
“That’s crazy, you don’t do that with dollars,” Pompliano pointed out, advocating for Bitcoin to be treated similarly to traditional currencies, eliminating the tax burden during transactions.
He makes it clear that these three proposals could trigger significant upward momentum for Bitcoin within the market, reflecting a wider demand for clearer and more favorable regulations in the crypto industry.
Regulatory Considerations and Global Implications
The move towards better regulatory clarity surrounding Bitcoin is echoed globally, as evidenced by reports of 13 states developing Bitcoin Reserve initiatives. This trend showcases a broader acceptance of Bitcoin’s role as a viable store of value and potential national reserve asset.
As Pompliano’s comments align with these ongoing developments, the upcoming “Crypto Ball” scheduled for January 17 is viewed by many as a pivotal moment for the cryptocurrency community, further asserting the importance of industry support in crafting policy.
While Trump is not slated to attend, his anticipated executive order aimed at promoting blockchain technology on his first day in office adds further excitement to these discussions.
Conclusion
In summary, Anthony Pompliano’s recommendations reflect an urgent call for actionable policies that could significantly bolster Bitcoin’s standing within the U.S. financial framework. By repealing the SAB-121 rule, establishing a strategic reserve, and revising tax treatments, these changes could position Bitcoin as not just an investment, but a critical economic asset moving forward.
