- Pompliano called for the repeal of SAB-121 to boost institutional adoption of Bitcoin.
- Trump’s pro-crypto stance has sparked market enthusiasm and speculation in high-yielding tokens.
Renowned Bitcoin (BTC) advocate and investor Anthony Pompliano has proposed a bold agenda to President-elect Donald Trump to drive BTC adoption in the United States.
In a recent video shared on X (formerly Twitter), Pompliano highlighted three crucial strategies. These could position Trump as a pioneer of 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 thus prevents broader institutional adoption.
Pompliano explained,
“If you’re a bank, you don’t want to hold on to an asset that counts as a liability.”
Removing this rule would encourage banks to hold Bitcoin, making the asset safer and more attractive for institutional investments.
To move forward with its second proposal, the executive suggested the creation of a national Bitcoin strategic reserve.
“The US government will hold more Bitcoin.”
He further emphasized the importance of the United States acquiring more Bitcoin. Pompliano cited the $200,000 already held on the federal balance sheet as the basis for positioning cryptocurrency as a vital long-term economic asset.
“It is good for the US economy in the long term for the US to have more Bitcoin.”
He also highlighted the transformative potential of Bitcoin for individuals, businesses and even nations. This comes as debates around its role as a national reserve asset gain momentum.
It is worth noting here that thirteen US states are proposing to create Bitcoin reserves, reflecting its growing recognition.
Bitcoin Adoption Status
This trend reflects international movements. El Salvador has fully integrated Bitcoin into its national strategy. Gelephu Mindfulness City, Bhutan plans to hold Bitcoin, Ethereum and BNB in strategic reserves.
Enterprise adoption continues to increase. Genius Group recently approved a $33 million rights offering to expand its Bitcoin treasury to $86 million. This highlights the attractiveness of the asset amid increasing adoption and price growth.
Pompliano also advocated for reforming Bitcoin’s tax classification, removing 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 said revisiting this tax treatment could remove obstacles that discourage everyday transactions. This would foster an environment in which Bitcoin could seamlessly integrate into the economy as a traditional medium of exchange.
“It’s crazy, we don’t do this with dollars.”
Pompliano suggested reclassifying Bitcoin as a currency to exempt transactions from capital gains tax, thereby improving its practicality for everyday use, noting:
“If Trump does these three things, all of a sudden Bitcoin will go much higher.”
How will Trump’s second term contribute to the crypto boom?
As the world awaits Trump’s second inauguration, the cryptocurrency market is rife with speculation about potential changes in the political and financial landscapes.
With Pompliano’s policy proposals, the upcoming “Crypto Ball” and talk of a pro-crypto executive order on Trump’s first day, the optimism within the crypto community is palpable.
These developments mark a pivotal moment for the crypto sector, the inauguration of which is expected to influence market dynamics and shape the future of digital assets.
