Donald Trump's Second Term Opened the Door for Bitcoin

Between Jan. 20 and Apr. 29, he issued 143 executive orders, 42 proclamations, and 42 memoranda, while only five bills became law.

Donald Trump’s second-term opening saw the stroke of a pen carry more weight than acts of Congress.

Between January 20 and April 29, he issued 143 executive orders, 42 proclamations, and 42 memoranda, compared to only five new bills passed by lawmakers.

That flurry of activity included a 10% tariff on all imports and a 145% levy on Chinese goods, to which Beijing responded with a 125% tariff on U.S. goods.

At the same time, the White House also wrote the first chapter of official American Bitcoin ownership.

On April 8, the administration announced the transfer of forfeited cryptocurrency into a new Strategic Bitcoin Reserve.

The move follows a December 2021 memo from Treasury Secretary Steven Mnuchin to begin transferring forfeited cryptocurrency assets to the government.

According to government estimates cited by Bloomberg, the U.S. seizes an average of $1.2 billion in cryptocurrencies annually.

At current prices, the administration holds Bitcoin holdings of about $12 billion, though that figure could vary depending on the timing of the transfer and the types of cryptocurrencies seized.

The administration also vowed to never again sell or auction off seized Bitcoin.

After March 2023, the administration will no longer sell or auction off seized cryptocurrency but will instead transfer it to the Strategic Bitcoin Reserve, the statement added.

The administration explained the decision to hold onto Bitcoin is part of a strategy to "maximize the value of recovered assets and ensure they contribute to the strength and stability of the U.S. economy."

"This measure will safeguard and amplify the government's ability to collect and utilize valuable digital assets for the benefit of the American people," the White House stated.

The move comes as Congress and the president are working to nullify an IRS rule that would have treated decentralized exchanges as brokers.

The administration is also continuing to delete several regulations imposed by previous administrations.

The SEC announced on April 28 that it is striking Staff Accounting Bulletin 121, which had imposed an extra capital charge on institutions that provide crypto custody services.

The accounting rule, issued in 2023, had been seen as a factor in pushing large banks to largely avoid offering crypto custody despite growing demand from institutional investors.

"We are committed to making the United States the best and most secure place in the world to invest and do business," said former commissioner Paul S. Atkins, who was appointed by Trump as SEC chair in 2023.

"The administration is working to eliminate unnecessary regulatory burdens and promote economic growth."

Those moves could open the door for large financial institutions to begin offering services related to digital assets.

The move would also place Bitcoin on the federal balance sheet alongside gold and treasuries.