Renowned Bitcoin advocate and investor Anthony Pompliano has put forward a game-changing proposal to President-elect Donald Trump, outlining three key strategies to accelerate Bitcoin (BTC) adoption in the United States. Pompliano’s vision aims to establish Trump as a pioneer in the digital currency revolution, positioning the U.S. to take a leadership role in the global cryptocurrency landscape.
In a recent video shared on X (formerly Twitter), Pompliano delved into the specific measures that could transform Bitcoin from an alternative investment into a mainstream asset in the U.S. financial system. These proposals are designed to address key barriers to institutional adoption, streamline the regulatory environment, and make Bitcoin more integral to the U.S. economy.
Pompliano’s first proposal centers around the repeal of SAB-121, a controversial accounting rule that classifies digital assets like Bitcoin as liabilities on bank balance sheets. This regulation has posed a significant hurdle for banks looking to hold Bitcoin, as it creates an unfavorable financial outlook for institutions considering adding the cryptocurrency to their portfolios.
Pompliano explained the challenge: “If you’re a bank, you don’t want to custody an asset that counts as a liability.” By removing SAB-121, the U.S. government would encourage banks to hold Bitcoin more easily, making it a more secure and attractive investment. This move could pave the way for greater institutional adoption, providing a boost to Bitcoin’s legitimacy and stability in the eyes of major financial institutions.
In his second proposal, Pompliano suggested the creation of a National Bitcoin Strategic Reserve. The U.S. government, he argued, should increase its Bitcoin holdings, making the cryptocurrency a vital component of national economic strategy. Currently, the U.S. holds around $200,000 in Bitcoin on its balance sheet. Pompliano believes this is a solid foundation for the U.S. to build on, ultimately positioning Bitcoin as a long-term economic asset.
“It’s good for the U.S. economy over the long run for the United States to have more Bitcoin,” Pompliano said. The idea of a Bitcoin reserve is gaining traction both in the U.S. and internationally. Several U.S. states are already advancing plans to establish Bitcoin reserves, and countries like El Salvador have fully integrated Bitcoin into their national strategy. Pompliano sees this trend as a global shift, one that could have far-reaching implications for economic policy and the role of cryptocurrencies in the international financial system.
The third and perhaps most significant proposal is a push to reform Bitcoin’s tax classification. Under the current tax framework, Bitcoin is treated as property rather than currency. This designation subjects Bitcoin transactions to capital gains tax whenever Bitcoin is used to buy goods or services. Pompliano argued that this tax burden prevents Bitcoin from being used as a functional currency in day-to-day transactions.
He called for Bitcoin to be reclassified as a currency, exempting it from capital gains taxes on transactions. “That’s crazy, You don’t do that with dollars,” Pompliano remarked, emphasizing that such a change would make Bitcoin much more practical for everyday use. By treating Bitcoin as a currency, the government would remove one of the key barriers that currently stifle its adoption as a mainstream medium of exchange.
“If Trump does these three things, all of a sudden Bitcoin’s going much, much higher,” Pompliano added, highlighting the potential for significant market growth and institutional involvement should these changes be enacted.
Pompliano’s proposals come at a time when Bitcoin’s global adoption is gaining momentum. Several countries, including El Salvador and Bhutan, are positioning Bitcoin as a strategic reserve asset. Meanwhile, corporate adoption is also on the rise. Companies like Genius Group are expanding their Bitcoin holdings, underscoring the growing appeal of the cryptocurrency as an investment and store of value.
In the U.S., Bitcoin’s recognition as an economic asset is also progressing. Thirteen states are currently advancing plans to establish Bitcoin reserves, indicating a shift towards embracing Bitcoin as a cornerstone of state-level economic strategy.
As Donald Trump’s second term as President looms, the cryptocurrency community is abuzz with anticipation about how his policies will impact the sector. Pompliano’s bold proposals, combined with the optimism surrounding Trump’s potential pro-crypto executive actions, signal a transformative moment for Bitcoin and other cryptocurrencies. The inauguration is expected to set the stage for changes that could shape the future of digital assets in the U.S. and around the world.
With the possibility of a “Crypto Ball” event and talks of pro-crypto executive orders on Trump’s first day, the crypto community is watching closely. If Pompliano’s suggestions are implemented, they could ignite a new wave of Bitcoin adoption, making the U.S. a leading force in the ongoing digital currency revolution.
In conclusion, Pompliano’s three strategic proposals offer a roadmap for President Trump to not only position Bitcoin as a critical asset in the U.S. economy but also to set a global precedent for the future of cryptocurrencies. Should these measures be adopted, Bitcoin could see unprecedented growth, with long-term benefits for both institutional investors and everyday users.
January 2025, Cryptoniteuae