- Pompliano urged the repealing of SAB-121 to boost Bitcoin’s institutional adoption.
- Trump’s pro-crypto stance sparked market excitement and high-return token speculation.
Noted Bitcoin [BTC] supporter and financier, Anthony Pompliano, has put forth an ambitious plan for President-elect Donald Trump to boost Bitcoin acceptance within the U.S.
In a more recent video posted on X, which was previously known as Twitter, Pompliano emphasized three crucial strategies that could potentially make Trump a pioneer in the digital currency upheaval.
Pompliano’s three keys to crypto success
In his suggestions, Pompliano advocated for the cancellation of rule SAB-121. For those unaware, this controversial accounting regulation presently categorizes digital assets such as Bitcoin as liabilities on banks’ balance sheets. This classification, in turn, impedes wider institutional acceptance.
Pompliano explained,
“If you’re a bank, you don’t want to custody an asset that counts as a liability.”
Eliminating this regulation might motivate banks to invest in Bitcoin, thereby enhancing its safety and allure for institutional investments.
Advancing with his second idea, the executive proposed establishing a National Reserve for Strategic Bitcoin Use.
“The US government is going to hold more Bitcoin.”
As a researcher, I cannot stress enough the significance I see in the U.S. increasing its holdings of Bitcoin. Pompliano’s argument, which I found compelling, is that the $200,000 already on the federal balance sheet serves as a solid base for viewing Bitcoin as an indispensable long-term financial asset.
“It’s good for the US economy over the long run for the United States to have more Bitcoin.”
He additionally emphasized the revolutionary capacity of Bitcoin not only for individuals and businesses, but also for entire countries. This emphasis arises as discussions about its function as a national reserve currency pick up steam.
It’s noteworthy that a number of thirteen U.S. states are currently working towards setting up Bitcoin reserves, signifying the increasing acceptance and acknowledgement of this digital currency.
Bitcoin’s adoption status
The pattern observed here aligns with global shifts. Specifically, El Salvador has embraced Bitcoin as part of its broader national approach. Meanwhile, Gelephu Mindfulness City in Bhutan intends to accumulate Bitcoin, Ethereum, and BNB for strategic purposes within its reserve funds.
The use of corporate adoption is on the upswing. Notably, Genius Group has endorsed a $33 million stock issuance aimed at boosting their Bitcoin Treasury to a total value of $86 million. This move highlights the asset’s attractiveness as it gains more acceptance and price escalation.
Moreover, Pompliano proposed modifying the tax categorization of Bitcoin, which is a significant hurdle in promoting wider acceptance.
In the existing system, Bitcoin transactions that involve goods or services are considered as property transactions, making them subject to capital gains tax. This setup unnecessarily burdens users and limits Bitcoin’s potential use as a practical, everyday currency.
As an analyst, I’m expressing that Pompliano proposes reconsidering the current tax structure to remove barriers that deter casual transactions. This adjustment could cultivate a conducive setting, enabling Bitcoin to smoothly assimilate into the economic landscape as a widely used form of payment.
“That’s crazy, You don’t do that with dollars.”
Pompliano proposed a change in classification for Bitcoin, categorizing it as a currency instead, which would make transactions exempt from capital gains tax. This adjustment, he noted, would improve Bitcoin’s utility for everyday transactions by making them more practical and less tax-burdened.
“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?
In the build-up to Trump’s second term, there’s a lot of talk in the cryptocurrency world about possible changes in both the political and economic environments.
Among crypto enthusiasts, there’s a strong sense of anticipation due to Pompliano’s strategic suggestions, the upcoming “Crypto Ball,” and rumors of a pro-cryptocurrency executive order being considered for Trump’s early days in office.
These advancements mark a crucial turning point for the cryptocurrency industry, as they are poised to impact market trends and mold the destiny of digital currencies following the upcoming launch.
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2025-01-16 17:53