White House official: Trump plans to sign order to discourage criminal enforcement of regulatory offenses

White House official: Trump plans to sign order to discourage criminal enforcement of regulatory offenses

A bold plan to establish a U.S. Bitcoin strategic reserve, proposed by Republican Senator Cynthia Lummis from Wyoming, has gained attention following the recent change in the White House. The proposed bill, known as the BITCOIN Act, aims to purchase 1 million bitcoins without increasing the federal government deficit, potentially using part of the Federal Reserve's gold reserves [1].

The bill, set to be introduced when the new Congress takes office in 2023, seeks to fill the bitcoin strategic reserve that President Trump proposed. According to Lummis, the gold certificates held by the Federal Reserve could be converted into bitcoins, with an estimated cost of approximately $90 billion based on current market prices [1]. This would account for nearly 5% of the total circulating bitcoins.

The proposal has sparked debate within the crypto community. While some see it as a significant step towards mainstream adoption of cryptocurrencies, others remain skeptical. Jennifer J. Schulp, Director of Financial Regulatory Research at the Cato Institute, expressed concerns about the stability of bitcoin as an asset for government funds [1].

Meanwhile, the White House has also been addressing trade-related issues. President Trump has indicated openness to additional tariff exemptions, following a temporary carve-out for cars from Canada and Mexico [2]. The administration has granted vehicles that qualify for duty-free trade under the U.S.-Mexico-Canada Agreement a one-month reprieve from new 25% duties.

Despite the potential for bipartisan support, the future of Lummis' bill remains uncertain. The likelihood of Trump establishing a bitcoin reserve after taking office is currently estimated at 31% on the crypto prediction platform Polymarket [1]. Michael Novogratz, head of Galaxy Digital, believes the possibility is low, but if it were to happen, he expects the bitcoin price to surge to $500,000 [1].

The U.S. Lumber Coalition has also applauded Trump's focus on trade law enforcement, particularly against Canadian unfair trade practices [3]. The coalition rejects the idea of using U.S. border tax collections to bail out Canadian lumber producers.

References:
[1] https://www.moomoo.com/news/post/73676585/record-tr4cking-news-coinbase-lyft-insulet-microchip-affirm-expedia-trade-desk-pinterest-biggest
[2] https://www.agri-pulse.com/articles/22508-white-house-trump-open-to-considering-tariff-exemptions
[3] https://www.prnewswire.com/news-releases/us-lumber-coalition-applauds-president-trumps-america-first-focus-on-trade-law-enforcement-302450891.html