- Pompliano pushed for the repeal of SAB-121 to boost Bitcoin’s institutional adoption.
- Trump’s pro-crypto stance sparked market excitement and high-return token speculation.
Well-known Bitcoin [BTC] Lawyer and investor Anthony Pompliano has proposed a bold agenda for President-elect Donald Trump to boost BTC adoption in the United States.
In a recent one video shared on X (formerly Twitter), Pompliano highlighted three crucial strategies. These could position Trump as a pioneer in the digital currency revolution.
Pompliano’s three keys to crypto success
Among the proposed measures, Pompliano called for the repeal of SAB-121. For those who don’t know, SAB-121 is a controversial accounting rule that currently classifies digital assets like Bitcoin as liabilities on bank balance sheets. This therefore hinders broader institutional adoption.
Pompliano explained,
“If you’re a bank, you don’t want to take custody of assets that are a liability.”
Removing this rule would encourage banks to hold Bitcoin, making the asset safer and more attractive for institutional investment.
Ahead of his second proposal, the director proposed the creation of a National Bitcoin Strategic Reserve.
“The US government will own more Bitcoin.”
He further emphasized the importance of the US acquiring additional Bitcoin. Pompliano cited the $200,000 already on the federal balance sheet as a basis for positioning the cryptocurrency as an essential long-term economic asset.
“It is good for the American economy in the long run if the United States has more Bitcoin.”
He also highlighted Bitcoin’s transformative potential for individuals, businesses and even countries. This comes as debates over its role as a national reserve asset gather pace.
Here it is worth noting that thirteen US states are making plans to build Bitcoin reserves, reflecting its growing recognition.
The adoption status of Bitcoin
This trend reflects international movements. El Salvador has fully integrated Bitcoin into its national strategy. Bhutan’s Gelephu Mindfulness City plans to hold Bitcoin, Ethereum and BNB in strategic reserves.
Adoption by companies continues to rise. Genius Group recently approved a $33 million rights offer to expand its Bitcoin Treasury to $86 million. This underlines the asset’s appeal in light of increasing adoption and price growth.
Pompliano also called for reform of Bitcoin’s tax classification, addressing a major barrier to its wider adoption.
Under the current framework, Bitcoin is treated as property, making transactions involving goods or services subject to capital gains tax. This approach creates an unnecessary burden on users and stifles its potential as a functional currency.
Pompliano argued that overhauling this tax treatment could remove hurdles that discourage everyday transactions. This would foster an environment where Bitcoin can be seamlessly integrated into the economy as a mainstream medium of exchange.
“That’s crazy, you can’t do that with dollars.”
Pompliano proposed reclassifying Bitcoin as a currency to exempt transactions from capital gains taxes, thus increasing its usefulness for everyday use, noting:
“If Trump does these three things, Bitcoin will suddenly go much, much higher.”
How will Trump’s second term help the crypto boom?
As the world anticipates Trump’s second inauguration, the cryptocurrency market is buzzing with speculation about possible shifts in the political and financial landscape.
With Pompliano’s strategic proposals, the upcoming ‘Crypto Ball’ and talks of a pro-crypto executive order on Trump’s first day in office, optimism within the crypto community is palpable.
These developments mark a pivotal moment for the crypto sector, with the inauguration set to influence market dynamics and shape the future of digital assets.
