-
President-elect Donald Trump may have the opportunity to revolutionize Bitcoin adoption in the U.S., as proposed by renowned advocate Anthony Pompliano.
-
With strategic proposals aimed at reforming current regulations, Trump could position Bitcoin as a mainstream currency and attract institutional investment.
-
Pompliano stated, “If Trump does these three things, all of a sudden Bitcoin’s going much, much higher,” focusing on regulatory changes crucial for its adoption.
Pompliano outlines essential strategies for Trump to revitalize Bitcoin adoption, highlighting the repeal of accounting rules and need for a National Bitcoin Reserve.
Pompliano’s three keys to crypto success
Among the proposed measures, Pompliano called for the repeal of SAB-121. For those who don’t know, SAB-121 is a contentious accounting rule that currently classifies digital assets like Bitcoin as liabilities on bank balance sheets. Thus, hindering broader institutional adoption.
Pompliano explained,
“If you’re a bank, you don’t want to custody an asset that counts as a liability.”
Removing this rule would encourage banks to hold Bitcoin, making the asset more secure and attractive for institutional investment.
Moving forward with his second proposal, the exec suggested the creation of a National Bitcoin Strategic Reserve.
“The US government is going to hold more Bitcoin.”
He further emphasized the importance of the U.S. acquiring additional Bitcoin. Pompliano cited the $200,000 already held on the federal balance sheet as a foundation for positioning the cryptocurrency as a vital long-term economic asset.
“It’s good for the US economy over the long run for the United States to have more Bitcoin.”
He also highlighted Bitcoin’s transformative potential for individuals, corporations, and even nations. This comes as debates around its role as a national reserve asset gain momentum.
Here, it is worth noting that thirteen U.S. states are advancing plans to establish Bitcoin reserves, reflecting its growing recognition.
Bitcoin’s adoption status
This trend mirrors international moves. El Salvador has fully integrated Bitcoin into its national strategy. Bhutan’s Gelephu Mindfulness City plans to hold Bitcoin, Ethereum, and BNB in strategic reserves.
Corporate adoption continues to rise. Genius Group recently approved a $33 million rights offering to expand its Bitcoin Treasury to $86 million. This underscores the asset’s appeal amid its increasing adoption and price growth.
Pompliano also advocated for reforming Bitcoin’s tax classification, addressing a key barrier to its broader adoption.
Under the current framework, Bitcoin is treated as property, which subjects transactions involving goods or services to capital gains tax. This approach creates an unnecessary burden for users and stifles its potential as a functional currency.
Pompliano stated that revisiting this tax treatment could eliminate hurdles that discourage everyday transactions. This would foster an environment where Bitcoin can seamlessly integrate into the economy as a mainstream medium of exchange.
“That’s crazy, You don’t do that with dollars.”
Pompliano suggested reclassifying Bitcoin as a currency to exempt transactions from capital gains tax, enhancing its practicality for daily use, noting,
“If Trump does these three things, all of a sudden Bitcoin’s going much, much higher.”
How Trump’s second term will help the crypto boom?
As the world anticipates Trump’s second inauguration, the cryptocurrency market is abuzz with speculation about potential shifts in political and financial landscapes.
With Pompliano’s strategic proposals, the upcoming “Crypto Ball,” and talks of a pro-crypto executive order on Trump’s first day, optimism within the crypto community is palpable.
These developments signal a pivotal moment for the crypto sector, with the inauguration set to influence market dynamics and shape the future of digital assets.
Conclusion
Pompliano’s outlined strategies present a clear pathway for Bitcoin to become a legitimate currency within the U.S. economy. By spearheading regulatory reforms, Trump could catalyze investment, enhance institutional confidence, and potentially elevate Bitcoin’s status. As the crypto community looks towards the future, the outcomes from Trump’s presidency could greatly impact Bitcoin’s trajectory, making this an imperative time for stakeholders to engage in the ongoing developments in the cryptocurrency space.
