Anthony Pompliano Shares 3 Key Actions For Trump To Boost Bitcoin Growth
Highlights
- Pompliano urges Trump to repeal SAB 121, allowing banks to hold Bitcoin and increasing demand for digital assets.
- He advises establishing a U.S. national Bitcoin reserve, adding to the government’s current 200,000 BTC holdings.
- Pompliano advocates for tax reform to remove capital gains tax on Bitcoin payments.
Anthony Pompliano, a well-known Bitcoin advocate and investor, has proposed three key actions to President-elect Donald Trump to drive Bitcoin adoption in the United States. In a recent video, Pompliano presented these strategies as critical steps for positioning Trump as a leader in the digital currency revolution. He emphasized the potential for these moves to reshape the nation’s financial landscape and enhance its standing in the emerging global cryptocurrency economy.
One of Pompliano’s main proposals is to repeal SAB 121, which currently restricts banks from holding Bitcoin. He argues that this repeal would enable banks to directly engage with Bitcoin and digital assets, fueling greater demand and integration of cryptocurrency within the traditional financial system. Pompliano believes this move would not only benefit the financial sector but also promote wider public acceptance of Bitcoin.
Pompliano also recommends the creation of a U.S. national Bitcoin reserve. He suggests that the government should increase its holdings of Bitcoin, adding to the existing 200,000 BTC in its reserves. By doing so, the U.S. would further solidify its role in the global Bitcoin economy, potentially influencing other nations to follow suit and boosting confidence in the cryptocurrency as a legitimate store of value.
Pompliano calls for a reform in tax policy, specifically advocating for the elimination of capital gains tax on Bitcoin payments. He believes that removing this tax would incentivize businesses and individuals to use Bitcoin more freely, fostering widespread adoption and enhancing the utility of digital currency. These measures, according to Pompliano, could position the U.S. as a global leader in the Bitcoin space while benefiting the economy as a whole.
Anthony Pompliano Suggests Repealing SAB 121
In a recent video on X, Anthony Pompliano’s first recommendation was to repeal Staff Accounting Bulletin No. 121 (SAB 121). This regulation currently prevents banks from holding digital assets, forcing them to classify such holdings as liabilities. Pompliano argues that removing this restriction would enable banks to hold Bitcoin on behalf of their customers, stimulating institutional demand for cryptocurrency.
Pompliano believes that allowing financial institutions to include Bitcoin in their balance sheets would strengthen the digital asset ecosystem. He also points out that this change could give U.S. banks a competitive advantage in the rapidly growing global cryptocurrency market.
It’s worth noting that Bitwise Chief Investment Officer also shared insights on trends in corporate Bitcoin adoption under Trump’s pro-crypto policies. He highlighted MicroStrategy’s aggressive Bitcoin strategy and the new FASB rules that allow companies to record price gains.
Establishing a Strategic Bitcoin Reserve for National Growth
Another action proposed by Anthony Pompliano was the establishment of a national Bitcoin reserve. He pointed out that the U.S. government already holds around 200,000 Bitcoin, which could serve as the foundation for creating such a reserve.
Pompliano recommended that the government increase its Bitcoin holdings instead of liquidating them. He stressed that Bitcoin’s increasing utility as a store of value and hedge against inflation could offer long-term economic benefits.
Rising Bitcoin prices and increased adoption have prompted significant corporate actions and acceptance. In a recent report, Genius Group approved a $33 million rights offering to expand its Bitcoin Treasury to $86 million. The offering allows shareholders to purchase shares at $0.50, with CEO Roger Hamilton planning to increase his stake by 10.3%.
Tax Code Reforms Proposed by Donald Trump
Pompliano also urged Donald Trump to implement tax reforms that would alter how Bitcoin is treated under current laws. At present, Bitcoin is classified as property, meaning transactions involving the cryptocurrency are subject to capital gains tax.
This classification creates challenges for consumers and businesses looking to use Bitcoin for everyday transactions. Pompliano proposed changes to the tax code that would eliminate these obstacles.
Furthermore, Anthony Pompliano wrapped up his recommendations by emphasizing that these measures would position the United States at the forefront of the digital currency revolution.
In contrast, other countries like El Salvador have already integrated Bitcoin into their national strategies. This has inspired regions such as Bhutan’s Gelephu Mindfulness City (GMC), which plans to hold Bitcoin, Ethereum, and BNB in its strategic reserves, focusing on digital assets with significant market capitalization and liquidity.
