- Removing restrictions on banks holding cryptocurrencies may integrate digital assets into traditional financial systems, boosting adoption.
- Locking 200,000 BTC in escrow could act as a de facto reserve, legitimizing Bitcoin as a cornerstone asset.
- Allowing tax payments in crypto without capital gains could reduce transaction friction, encouraging broader use.
Efforts are underway to bring cryptocurrency into the core of the U.S. financial system. President Donald Trump is reportedly working with figures such as David Sacks, Bo Hines, Donald Trump Jr., and Eric Trump, to explore the establishment of a White House Crypto Council. This project works to remove barriers stopping digital asset use while preparing the way for Bitcoin to succeed.
Repealing SAB 121: Clearing Regulatory Barriers
The council wants to eliminate SAB 121 as its main action. Under this accounting standard banks cannot safely store crypto assets which keeps digital assets separate from financial systems. By scrapping SAB 121 rules banks can become cryptocurrency custodians who help users borrow value against their digital asset holdings. Conventional economic usage of crypto will improve market value when banks gain full crypto servicing rights.
Establishing a Strategic Bitcoin Reserve
The United States government is reviewing plans to set up a strategic Bitcoin Reserve. A practical solution exists to position the government’s 200,000 bitcoins in an escrow lock for 20 years through executive order despite official SBR creation needing Congressional authorization.
By moving funds into storage this decision would serve as an effective reserve system that legitimates Bitcoin as long-term wealth preservation. The savings of Bitcoin reserves currently worth $6.4 billion demonstrate government dedication to Bitcoin.
Simplifying Tax Policies for Crypto Payments
Under existing IRS rules cryptocurrencies are treated as property subject to capital gains with all transactions. The new plan lets taxpayers pay their obligations with Bitcoin to avoid standard property transaction taxes. A small portion of collected taxes in cryptocurrency will increase the value of our proposed reserve. Expanding cryptocurrency use would generate more widespread adoption because transactions would happen faster.
Potential Market Impact
The pending plans have significant potential to influence how the crypto industry operates. When banks start managing crypto this strategy will create more capital availability and boost investor activity. When officials support this plan Bitcoin might reach new highs but opposition could restrict growth or send prices swinging.
The proposals have many challenges before becoming reality. These changes have the power to make cryptocurrencies more acceptable in markets everywhere.
